India may have to offer electronic manufacturers additional sops such as cheap credit and incentives for export along with infrastructure support in order to boost production and help the sector compete with China, Vietnam and Thailand, according to a top government official.
These incentives, over and above the proposed reduction of corporate tax to 15% for new manufacturing units, are vital for India to successfully attract companies looking to relocate manufacturing facilities.
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“While the tax announcements made last week send a very good signal, in order to help attract investments, we will need additional initiatives,” the official told ET, pointing out that Indian electronic manufacturers incur 8-10% higher costs compared with other Asian countries.
Sops that are similar to the incentives for export under the existing Merchandise Exports from India Scheme (MEIS) are what the industry requires, the person said.
Source: Economic Times
