The electronics manufacturing policies of the Centre and the Uttar Pradesh government will pave the way for companies to shift their base from China to India, industry body ICEA said on Tuesday.
Last week, the Uttar Pradesh government unveiled a new electronics manufacturing policy to attract companies looking to shift their manufacturing base to India in the post COVID-19 scenario.
"UP is already home to approximately 60 per cent of the total manufacturing units relating to mobile phones and components and we are confident that with such incentivization and policy support the state would further witness the accelerated establishment of units...," ICEA Chairman Pankaj Mohindroo said in a statement.
The India Cellular and Electronics Association (ICEA), which represents companies like Apple, Lava, Xiaomi, Vivo, Foxconn and Wistron, has been working with the state government since the past five-six years.
ICEA said specific policy initiatives such as allowing dormitory facilities to be established within the manufacturing premises is a welcome step by the state government.
"We are confident that cumulatively these policy interventions both by the Central Government as well as UP...would definitely pave the way for shifting of base from China and elsewhere to UP and India," Mohindroo said.
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The industry body signed a memorandum of understanding (MoU) with the state government in January 2015, whereby ICEA's objective was to establish a mobile manufacturing ecosystem.
"The outcomes targeted in this MoU were achieved within 2 years itself," Mohindroo said.
A second MoU was signed with the Uttar Pradesh government in February 2018 with an investment target of Rs 10,000 crore and generation of 3 lakh jobs.
The agreement is "heading towards optimum fulfilment too", the statement added.
Recently, Samsung and contract manufacturers of Apple, Lava, Dixon and several other companies applied for the production linked incentive scheme announced by the Centre.
The companies have jointly committed to produce mobile phones worth Rs 11 lakh crore over the next five years.