The modern time is well suited with advanced technology, electronics, and as well as these are the crucial needs for people. Therefore, a new scheme got passed to elevate domestic electronics manufacturing. It includes mobile phones, electronic components, and semiconductor units. This scheme is introduced under the Union Budget 2020 as announced by Nirmala Sitaraman, Finance minister.
The establishment of this scheme believed to open new job opportunities, mass employment. Considering the possibilities with electronics manufacturing, Sitaraman said that India needs to manufacture networked products and hence became a part of the global value chain. The electronics sector has high-cost benefits, and apart from this, domestic manufacturing also has a broad scope. She further added that the scheme might get extended to medical device manufacturing
The exports of high-end mobile production is also of great concern. That brings significant investment to the country and thus establishes good relations with others. To attract global investments, ET reported that the Mobile Association of India (IAMI) and other industry recommendations have come out with many solutions. They suggest the comeback of the Modified Special Incentive Package Scheme (M-SIPS), as this scheme has provided a capital subsidy of 20-25% to manufactures. It was efficient in bringing considerable speculation to India.
With the end of 2019, the government is not accepting any new applications for scheme M-SIPS. Simultaneously other programs such as Electronic Manufacturing Clusters (EMC) and Electronic Development Fund (EDF) have also ended last year.
The electronics sector is a growing sector and unlocking the path of new opportunities. As per the reports, the global mobile handset market will reach $648 billion by 2025.