Import duties on wide range of electronic products have been consistently increasing for the past year to push Electronics industry in India. Is this enough to increase the growth trajectory and employment generation in the industry? Analyse. (200 Words)
Refer - Business Standard
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
· The government India's massive import bill for electronics, which stood at $21 billion in FY18 and made up the third biggest chunk of the import bill after crude oil and gold.
· Manufacturers say that while the government is effectively cutting off their access to foreign imports, it hasn't been able to create a suitable supply of components in the domestic sector at the same pace.
· While the hikes had initially focused on components, specifically those for mobile device manufacturing, later policies saw higher duties being placed on finished goods as well. This includes consumer durables such as speakers, air conditioners, household refrigerators, and washing machines.
Need more focus on Make in India Programme
· Hike in import duties is not a comprehensive solution for the growth of electronics industry, need of the hour is to effectively apply the intentions of make in India to the electronics industry.
· The M-SIPS scheme, need to be developed to boost manufacturing and attract investments in the electronic sector.
· So it was modified in August 2015 by extending the scheme for 5 more years to 2020, and adding 15 new product categories like smart cards, liquid crystal modules, consumer appliances, Internet of Things products, multi-functional electronic devices and optical fibre etc.
Electronics Development Fund (EDF):
· EDF was launched in 2016, with the objective of promoting companies in developing new technologies in the areas of electronics, nano-electronics and Information Technology (IT).
· This fund needs to be utilized to build industries to manufacture integrated circuits for various applications rather than importing from foreign countries like China, Vietnam etc.
National skill Qualification frame work needs to be rationally aligned with Ministry of Electronics and Information Technology for more employment generation under make in India Programme.
Further effective implementation of TEQIP programme in partnership with World Bank needs to be integrated with NSQF to improve the employability of good quality enginners with desired skills that meets the demand of electronic industry.
