Consumer Electronics and Appliances Manufacturers Association has welcomed government's move to extend M-SIPS by five year, saying it would act as a 'catalyst' for the growth of the sector.
Moreover, broadening of the scope of Modified Special Incentive Package Scheme (M-SIPS) to cover 15 new product categories, would trigger significant growth in the sector, CEAMA said.
"The extension of M-SIPS will act as a catalyst in identifying technology spill-over effects like transfer of skill personnel, growth of parts and components supplier networks and user-producer linkages," said CEAMA President Manish Sharma.
Yesterday, to boost manufacturing of electronics items, the government had extended M-SIPS by five years and also expanded the scope of the programme to cover 15 new product categories.
The decision was taken at the meeting of the Cabinet, headed by Prime Minister Narendra Modi, to promote 'Make In India' and 'Digital India' initiatives.
"It is a step further to make India more investor friendly, helping in achieving the larger goals of 'Make in India', and enabling gradual growth of the eco-system in this regard," said Sharma, who is also Panasonic India and South Asia Managing Director.
The 15 new product categories included in the MSIPS are smart cards, consumer appliances (like washing machines, refrigerators, air conditioners), electronic product design, optical fibres and Internet of Things (IoT) products, among others.
The government has also made it easier for companies to receive incentives under the MSIPS scheme.
The scheme was originally approved by the government in July, 2012. It provides capital subsidy of 20 per cent in SEZ or 25 per cent in non-SEZ units engaged in manufacturing of electronics items. The original scheme was for three years.
