The ministry of electronics and IT (MeitY) has urged the finance ministry to restore smartphone export incentives that were suddenly halved this month until new benefits were made available.
At a recent meeting, MeitY told the finance ministry that if the 4% export duty credit scrips under the Merchandise Export Incentive Scheme (MEIS) was not reinstated, India’s $3 billion smartphone exports would collapse, causing large-scale job losses.
“This was a shock to us,” a senior MeitY official told ET, adding that the ministry had made a representation to the finance ministry, seeking continuation of MEIS until new incentives replace it.
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“We are actually working on how to further incentivise exports of smartphones from India and removing an existing incentive without a replacement is chaotic for the industry,” the official said.
Source: Economic Times
