MAIT suggests two new PLI schemes to the GoI

The Manufacturers’ Association for Information Technology (MAIT) has submitted its recommendations to the Government of India (GoI) regarding the Indian Electronics Industry. These recommendations emphasize integrating India into the Global Value Chains (GVCs).

By actively participating in GVCs, India can enhance its position in the global electronics market and contribute to economic growth and technological advancement. MAIT’s advocacy aims to foster collaboration, innovation, and competitiveness within the Indian electronics ecosystem, ultimately benefiting both the industry and the nation.

Rajkumar Rishi, President, MAIT said, “The advent of Worldwide Value Chains and the Government of India’s PLI and Make in India scheme has led to a notable increase in the country’s worldwide trade, especially in the electronics and ICT sectors. At MAIT, we believe that for India to seamlessly integrate into global supply chains, regulatory customization that encourages global leaders to invest and allows local companies to participate is essential. As more companies think about investing in Indian manufacturing, we predict faster growth in output, exports, and the overall economy. One of the main industry priorities listed in MAIT's Industry Recommendations for MeitY and related ministries is developing a robust cybersecurity strategy for the new India. India has a great opportunity to dominate global manufacturing thanks to the Indian Government’s robust and stable policies and a friendly business environment.”

The Manufacturers’ Association for Information Technology (MAIT) has submitted comprehensive recommendations, organized by Ministry and Department, to various key entities within the Indian government. These recommendations address critical aspects of the Indian Electronics Industry and aim to position India as an integral part of Global Value Chains (GVCs).

Key highlights from MAIT’s recommendations include:

Ministry of Electronics and Information Technology (MeitY):

•    Launch at least two new Production-Linked Incentive (PLI) schemes:

•    One specifically targeting Components.

•     Another focusing on Hearables/Wearables.

These PLI schemes will:

•     Foster manufacturing competency.

•     Encourage domestic champions in segments like components and sub-assemblies.

•     Enable exports.

•     Create large-scale production capacity.

•     Attract new investments.

•     Boost domestic value addition.

Cybersecurity Legislation Alignment:

MAIT recommends aligning India’s cybersecurity legislation with key international partners’ legislative or regulatory frameworks.

•     Strengthen trusted and secure international cyber-secure supply chains.

•     Enhance collective security.

•     MAIT advocates for adopting cybersecurity principles of ‘Secure by Design’ and ‘Secure by Default’ within India.

Department for Promotion of Industry and Internal Trade (DPIIT):

MAIT urges DPIIT to facilitate an Ease of Doing Business (EoDB) environment that supports industry growth and streamlines processes.

Ministry of Commerce (MoC):

Recommendations to MoC cover several critical areas:

•     Special Economic Zones (SEZ): Enhance SEZ policies to foster investment and manufacturing.

•     SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies): Address SCOMET-related challenges.

•    GAER (Global Anti-Excess Regulation): Provide clarity on GAER norms.

•    SEIS Reimbursements (Service Exports from India Scheme): Streamline SEIS processes.

•     Anti-Dumping Duty (ADD) on PCBs (Printed Circuit Boards): Evaluate the impact of ADD on the industry.

MAIT suggests the following to MoF:

Tariff Reforms: Implement reforms to enhance competitiveness, encourage large-scale manufacturing, and boost exports.

HSN Code Classification: Simplify HSN code classification for ease of compliance.

Authorized Economic Operator (AEO) Certifications: Streamline AEO certification renewal procedures.

Ministry of Civil Aviation (MoCA):

MAIT advocates for digitalization in labeling:

•    Request to adopt complete digitalization of labeling requirements for pricing and product details.

Department of Telecommunications (DoT):

Recommendations to DoT include:

•     PLI Investment Limit Enhancement for Telecom: Open windows for investment limit enhancements under the PLI scheme.

•     Incentive Programs for Passive Components: Encourage MSMEs by incentivizing passive component manufacturing for telecom equipment.

•     Exclusion from Section 65A: Recommend excluding telecom and electronics sectors from the applicability of Section 65A to optimize the MOOWR (Modified Other Operating Window Regime) scheme.

Ministry of Environment, Forest and Climate Change (MoEF&CC) / Central Pollution Control Board (CPCB):

MAIT highlights operational challenges related to:

•    E-waste

•    Plastic Waste

•    Battery Waste

Additionally, MAIT suggests developing India’s own recycling standards.

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