2 Feb 2017
INDIA: Electronics Manufacturers Set for Capital Expenditure Subsidy in Bid to Boost Domestic Production
Electronics and components manufacturing firms are to be incentivised to boost domestic production. Under the terms of the newly-approved Modified Special Incentive Package Scheme (M-SIPS), a 20% subsidy on capital expenditure investment will be granted to manufacturers based in Special Economic Zones (SEZs), while those operating outside such zones will be eligible for a 25% subsidy.
Available for new projects and expansion projects, the scheme is capped at Rs 10,000 crore (US$1,483 million). Companies have until December 2018 to apply, with approval said to be granted within 120 days. The scheme is intended to boost the government’s Make-in-India initiative, a policy aimed at encouraging multinational and domestic companies to manufacture in India.