Government has received investment proposals totaling Rs 90,000 crore in the last two months for electronics manufacturing in the country, with significant interest in making mobile phones by local and foreign firms. Also Read - Ola to offer free oxygen concentrators to the needyAlso Read - Samsung Galaxy S20 FE Long-term Review
“About Rs 90,000 crore worth of proposals were received in the last two months. There is hardly any company which has not shown interest to manufacture in India,” said Ajay Kumar, Additional Secretary in Ministry of Communications and IT. India is already the fastest-growing smartphone market and it is now also becoming the fastest growing manufacturing destination of phones in the world, Kumar told PTI. Also Read - OnePlus India partners American Express for cashback deals, EMI offers and more
Proposals worth about Rs 1.10 lakh crore have been received in the last 12 months from various companies for electronics manufacturing in the country under the Modified Special Incentive Package Scheme (MSIPS). Out of this, over 80 percent have materialized in the last two months itself. “There is a significant interest in mobile phones. Now we are seeing a lot of players are coming in, both Indian companies, who were till now importing, as well as foreign companies. We are seeing that they are increasing their presence and starting to manufacture here,” Kumar said.
He named global players like Airbus, Phillips, Thomson, Samsung, LG and Flextronics among those having shown interest to start manufacturing in the country. According to CyberMedia Research, 24.8 percent of smartphones shipped in the country during April-June quarter of 2015 were made locally, up from 19.9 percent in the preceding quarter. Government has been pushing to promote manufacturing in the country, especially electronics.
While players like Samsung, Micromax and Spice have been assembling handsets in India, firms like Lava, HTC, Asus and Gionee have also evinced interest in setting up their manufacturing base. In the past few weeks, Xiaomi and Motorola, along with Lenovo, have commenced assembling smartphones in the country through contract manufacturing by Foxconn and Flextronics, respectively. According to the Department of Electronics and IT, the demand for electronics in India is expected to reach $400 billion by 2020, while the sector has potential to attract $100 billion investment and provide jobs to 28 million people.
The government last month extended the MSIPS policy by five years to boost electronics manufacturing. The scheme was originally approved by the government in July 2012. It provides capital subsidy of 20 percent in SEZ or 25 percent in non-SEZ units engaged in manufacturing of electronics items. The original scheme was for a duration of three years……….