Electronics manufacturing policy may soon get nod [Governance]
NITI Aayog may seek Cabinet’s approval in a fortnight for a long-term policy to boost manufacturing of electronic products by providing a host of incentives to attract investment.
In view of great potential of electronics manufacturing sector, NITI Aayog has prepared a draft strategy paper titled ’Make in India—Strategy for Electronic Products.’
Aayog had suggested a 10-year tax holiday for companies investing over $1 billion that can also create 20,000 jobs in electronics manufacturing activities. This would help bring some large foreign firms to India.
NITI Aayog has also been asked to devise an export-oriented strategy for the industry, saying the domestic market at $65 billion remains small in relation to the world market, which is in excess of $2 trillion.
NITI suggested that the country needs to forge free trade agreements (FTAs) to create duty-free market for electronic goods. It had also suggested setting up coastal economic zones (CEZ) which may be up to 200-250 kilometres wide from the coastline.