As per the Internet and Mobile Association of India (IAMAI), the government should reinstate the Modified Special Incentive Package Scheme (M-SIPS) which provided a capita subsidy between 20-25 per cent to manufacturers.
IAMAI has recommended the move to attract global investments in exports driven high-end mobile manufacturing.
As per IAMAI, M-SIPS incentives should be raised to 30 per cent from 25 per cent of the capex to offset the opportunity cost of starting component manufacturing facility in India.
Additionally, it also recommended the Ministry of Electronics and Information Technology (MeitY) to set up a special purpose vehicle to quickly evaluate, assess and disburse applications under M-SIPS 2.0. According to the industry body, manufacturing of printer circuit boards (PCB), plastic mouldings and display modules could be some of the areas of focus.
The government had stopped accepting fresh applications under the scheme at the end of 2019.