“From the electronics sector perspective, this decision by the government is not aligned with the vision of an export-led electronics manufacturing out of India. MAIT has been proposing for 8-10% support to offset India’s disability to attract global manufacturing into the country.
The exports of the Electronics sector at this reduced MEIS rate of 2% will be impacted negatively. It will not only bring exports to a standstill of electronics from India but, will also impact the existing investments as well as planned investments for the future period – much of which was linked to export orders. This will also negatively impact the ongoing work towards the creation of value chain of electronics manufacturing in the country and further risk the employment creation emanating from electronics manufacturing.
We urge the government to continue the support given to the electronics industry so as to provide policy predictability and assurances to the industry not just in India but globally as well.” ―Nitin Kunkolienker, President, MAIT