As per industry sources, mobile handset brands and third-party manufacturers are putting their investment and hiring decisions on hold following the government’s recent move to reduce export incentives.
Recently, the government reduced duty credit scrips under the export incentive from 4 per cent to 2 per cent.
Following this move, the Indian Cellular and Electronics Association (ICEA) has written to the government stating that manufacturers would now be forced to cancel their export orders and reassess their investment plans due to reduction in export sops.
Further, the ICEA expressed concern over the incentive cut saying that it would lead to an immediate halt in all future hiring and capacity expansion.
