Narendra Modi’s ‘Make In India’ initiative has received another major boost with the announcement of the new Gujarat Electronic Policy 2016. Under the leadership of Chief Minister Smt Anandiben Patel, the Gujarat government has put forward the policy to increase investment in the Indian electronics sector.
With the aim of the government of India’s National Policy on Electronics being to attract major inward investment, and the many incentives and subsidies provided by the government, it’s no surprise that new IT and other electronic companies are curious about how they can reap the benefits.
The policy states, “Electronics System Design and Manufacturing (ESDM) is one of the largest and fastest growing manufacturing industries in the world. By one estimate the current market size of ESDM at USD 1.75 trillion is expected to rise to USD 2.4 trillion by 2020. The consumption within Indian market is also expected to reach USD 400 billion by 2020.”
The following are some of the key highlights from the policy:
- In addition to the benefits offered by the Electronic Manufacturing Clusters (EMC) scheme, the state government will provide up to 25 percent assistance to Greenfield (undeveloped/underdeveloped geographical areas) EMCs, with a ceiling of ₹ 100 million (over $1.4 million)
- Uninterrupted power supply and tariff subsidy at ₹ 1 (around 1.5 cents) per unit on the billed amount for a period of five years
- Net tax paid under Section 13 of the Gujarat Value Added Tax Act by the eligible units will be reimbursed by the state government, with the amount limited to 90 per cent of the gross fixed capital investment made by the unit within one year (two years in case of ‘Mega ESDM Projects’)
- Single Window Clearance Committee will be introduced for speedy and hassle-free approvals and clearances for the setting up of new units in the state
- Assistance will be given to Micro, Small and Medium Enterprises (MSMEs) for participating in international trade fairs by providing 50 per cent of the expenditure required for rent or organiser fees, product catalogues and display material, with a limit of ₹ 200,000 (just under $3,000)
- In addition, the state government will also support the development of testing facilities and incubation centres. The financial assistance provided will cover up to 60 per cent of the project cost, excluding land and buildings, subject to a maximum of ₹ 5 million (around $74,400).
- A special focus on quality certification—the policy offers an incentive of 50 per cent of the quality certification costs, with an overall ceiling of ₹ 600,000 (almost $9.000) over five years
You can find the full list of highlights here.
At QX Corporate Advisors we help with the entire business setup process. We also ensure that all permissions required by regulatory bodies are attained as quickly as possible. We can provide customised services for business entity setup, approvals, legislative registrations and all of their post registration compliances. So if the Indian electronics sector is of interest to you at this exciting time of investment, then please speak to us.
If you’ve been thinking about entering the Indian market or have any questions about India market entry strategy email us on firstname.lastname@example.org or call us on 0845 838 2672.