Differential tariff is helping domestic manufacturers to get into other areas like medical electronics
The production of mobile phones in India is likely to touch 500 million units in the next two years with leading companies setting up manufacturing bases in the country.
“Today, with base of talent and incentive policy, India is becoming a global hub for manufacturing of phones and especially low-end phones,” Telecom Secretary J. S. Deepak said on Sunday.
He was addressing a seminar on Telecom and Broadcasting theme — ART (Adjudication, Regulation, Telecommunication) of Convergence, TDSAT.
Earlier this year, Telecom Minister Ravi Shankar Prasad had announced that mobile phone production in India had touched100-million mark.
“The number of phones being manufactured was 10 million sometime back (which increased) to 45 million and then to 100 million... The time has come when we will reach 500 million, may be in two years,” Mr. Deepak said. He said apart from phones, the differential tariff is helping domestic manufacturers to get into other areas like medical electronics, consumer electronics as well as broadband equipment and set up boxes. The government wants to reduce imports of electronic products while meeting domestic requirement through indigenous production.
It has received proposals worth Rs. 1.13 lakh crore in the electronics manufacturing segment under the modified special incentive package scheme (M-SIPS), which offers capital subsidies to large investments in electronics manufacturing and system design.