The pioneering contributions of ICEA (previously ICA) had helped lay down an attractive fiscal and non-fiscal incentivization regime to promote investments into the handset and components manufacturing eco-system which are well documented and appreciated. The success strategy is now beign extended to larger electronics sector to reduce India’s humungous import dependency and to make India the global electronics manufacturing hub.
Some of the significant measures undertaken by the erstwhile ICEA towards establishment of a robust manufacturing eco-system around mobile handsets and components include:
Establishment of a differential duty regime on mobile handsets in 2014 which went up subsequently in 2015. This duty differential regime was further sustained in the GST regime. Formulation and Notifying of the Phased Manufacturing Program (PMP) by the Ministry of Electronics and IT (MeitY) with year wise and component wise roadmap.
Help bring in predictability for the PMP roadmap regarding formal implementation of the PMP roadmap for 2016, 2017 and 2018. Work closely with various prominent states such as UP, AP, Telangana,
Tamil Nadu, Rajasthan, Haryana etc. to have effective and industry friendly policies to support the manufacturing community. Have been working closely with Industry stakeholders including Foxconn to sensitize the India opportunity and help find investors/ business opportunities. After the initial success witnessed in mobile handset and components manufacturing, now the shift has moved to establish India as the Global manufacturing HUB for which we are actively working with the PMO, MeitY, DoT, DIPP, CEEC/ DoR, MoEF&CC etc.
Some of the major achievements/ contributions of ICEA towards promotion of legal Industry / growth in manufacturing include:
- Establishment of legal market operations in India from scratch through effective advocacy efforts.
- During initial years of mobile revolution in India during 2000-2002, 80 – 85% of the market was overpowered under the weight of the grey market operators which was largely fuelled due to the high customs / CVD applicable on mobile handsets which was hovering at 27% in 2001. Similarly, the VAT across VAT jurisdictions across the country were at a significantly higher side.
- CVD / Import duty was gradually brought down and made zero% in the year 2006 and VAT rate was brought back to 4% – 5% from as high as 15% – 20%. This led to the legal market registering manifold growth and effectively putting a barrier on the growth of the grey market operations.
- These important achievements on the regulatory / taxation front are largely attributed for the explosive growth of the Industry during 2004 – till date. Starting from approx. 10% legal market existing in India in the year 2002, the industry achieved over 80% plus legal market operations with within 2 years.
- Establishment of a robust mobile handset manufacturing eco-system in India during 2004-2012. After successful establishment of 80% plus legal market operations in India from almost zero during 2002-2004, ICA’s next pioneering contribution was establishing a robust mobile handset manufacturing eco-system.
- ICEA in partnership with the Department of Information Technology (DIT), Government of India (which is currently been rechristened as Ministry of Electronics and Information Technology (MeitY)) had set up two Manufacturing Advisory Committees (MAC) to take forward this vision. The MAC – Stage I and MAC – Stage II were established in the year 2004 and year 2009 respectively. Because of this a significant component eco-system also got established during this period with presence of big names like Foxconn, BYD, Salcomp etc.
- Establishment of the Phased Manufacturing Program (PMP) to deepen and broaden the mobile components manufacturing eco-system by way of a formal notification from MeitY.
- In a historic development which is a first of its kind in the history of the Indian manufacturing landscape, the Government of India vide MeitY (Ministry of Electronics and IT) Notification dated 28-04-2017 has notified the “Phased Manufacturing Program (PMP) to promote indigenous manufacturing of Cellular Mobile Handsets, its sub-assemblies, and parts/ sub-parts/ inputs of the sub-assemblies thereof”. As a result of this, more than 268 factories have been set up in the country for manufacture of handsets and components, placing India as the second highest handset manufacturing country after China. Approx. 4.5 lakh employment has been generated during this period.
- Jointly collaborating with MeitY and state Governments to help establish the ESDM eco-system in India.
- ICEA has been actively supporting the initiatives of the Ministry of Electronics and IT (MeitY), various state Governments and Industry stakeholders which are aimed at establishing India the
Global Manufacturing HUB for the electronics sector.
- ICEA’s inputs were instrumental in the drafting of various policy level documents related to the promotion of the ESDM sector like the National Policy on Electronics (NPE), 2012, M-SIPS policy, EMC (Electronic Manufacturing Cluster), state level EHM (Electronics Hardware Manufacturing) Policies for various states such as UP, Gujarat, Maharashtra, AP, Telangana etc.
- Establishment of safety standards for Mobile Phones and Mobile Phone Batteries.
- ICEA has undertaken a pioneering role for establishment of safety standards for mobile handsets and mobile phone batteries. Based on ICA’s request BIS had set up a special Technical Committee to formulate and finalize safety and performance standards related to Mobile handsets.
- Establishment of Telecom Sector Skill Council (TSSC). The Telecom Sector Skill Council (TSSC) has been institutionalized under the aegis of the National Skill Development Corporation (NSDC) in
alignment with the objectives set out by the Prime Minister’s National Skills Mission, to skill develop/ skill upgrade more than 5 million people in the Telecom sector over a 7 years’ time frame. These initiatives are expected to bring in a lot of benefits to the industry by bridging the skill gaps existing across verticals in the Telecom sector.
- ICEA has been playing a pioneering role for establishment of the ESDM (Electronics System Design and Manufacturing) eco-system in India in sync with the Make in India and Digital India vision
of the Government of India.
- Establishment of ACTION CENTRE FOR SMART TECHNOLOGY (ACST). In order to support the Governmental efforts on planning and executing the goals related to National Optic Fiber Network (NOFN) and making available broadband infrastructure to each Gram Panchayat around the nation, and to realize the vision of Hon’ble Prime Minister of India on Digital India, the ICEA established an ‘Action Center for Smart and Broadband Bharat’ (ACSBB).
- Establishment of Centre for Development of the Electronics System Design and Manufacturing (C-ESDM). ICEA has decided to establish the Centre for Development of Electronics System Design Manufacturing (C-ESDM) both to undertake targeted investment promotion exercise in select ESDM countries to support the efforts which are already been initiated by the MeitY and various State Governments and provide hand-holding and investment facilitation services to various Industry stakeholders in the ESDM space. The help desk will be working in close coordination with the MeitY, DoT, DIPP, state Governments and Industry stakeholders to take forward the Make in India vision.
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