According to the Manufacturers’ Association of Information Technology (MAIT), for the successful implementation of the Production Linked Incentive (PLI) scheme, manufacturers need infrastructure on ground, besides incentives, for which states need to come on board.
Further, MAIT said that single-window clearance system in several states has become an additional window, which makes investors to run after individual departments for clearances. The government needs to take calls and get states like Andhra Pradesh, Karnataka, Tamil Nadu, Telangana, Maharashtra, Uttar Pradesh, Gujarat, Punjab and Haryana on board, the industry body added. These states account for 70-80 per cent of electronic hardware manufacturing and thus they have to come up with a proactive policy. It will create massive tax and non-tax revenue for the states.
As per MAIT, incentives provided by the government are not enough, and factors that can lead to demand aggregation are missing in the policy. The government has to play an enabler role for both demand creation as well as giving a little more incentive to shift the existing supply chain from other parts of the world to India.
