NEW DELHI – Companies willing to start electronic business or electronic manufacturing units in India are all set for a jackpot as these organizations are eligible for incentives and subsidies worth Rs 30,000 crores. Mobile app development companies also have good news because their incentive package is worth Rs 10,000 crores, as reported by economic times.
J Satyanarayana, the new IT Secretary, at Department of Electronics and IT said “About Rs 20,000 crore has already been approved. While the rest Rs 10,000 crore has been put forth for approval by the Cabinet for startups interested in IP creation, as an electronic development fund – EDF,”
There is also a new plan drafted by the government, it plans to encourage and promote ‘Made in India’ electronic goods in the global market. The IT secretary also added saying “We have developed a marketing strategy. We will visit global trade fairs and exhibitions and invite component and electronic makers in Korea, Taiwan, China, Japan, Germany and US, to locate units in India.”
The Union cabinet quickly approved Rs 10,000 crores last month, as financial support for the development of electronic manufacturing companies. An additional package of Rs 10,000 crore has been approved to completely promote large manufacturing units in the country. About two to three companies have shown interest and these companies are expected to utilize these benefits to set up functional units by next year.
Government has played its role efficiently as this is not the first time that it is coming out with such benefits. Previously it had tried to attract semi conductor business to India but it fell only on deaf ears. Not a single company had utilized these benefits for chip manufacturing in India. It was during the tenure of Dayanaidhi Maran, when the incentives were rolled out last time.
Mr. Satyanarayana also said “It has been disappointing. Attracting investments involves a multi pronged strategy to develop talent, give incentives, and encourage IP creation, which we have embarked upon now.”
It is also reported that these incentives will be available in 29 categories including IT hardware, Telecom, Medical electronics, Auto electronics, Avionics and Nano-electronics. Nokia, Samsung, LG, Dell, Lenovo who already have their manufacturing units in India are also eligible for these benefits.
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