New reforms have been suggested to initiate Electronics Manufacturing, on which NITI Aayog has made several suggestions, specifically related to the special coastal zone and tax breaks. These reforms have been suggested by the government, with a view to get hold of the electronics markets with China.
NITI Aayog thus, questions over the new policy formulation or shift. It argues that there should be an import substitution and that the strategy must an export oriented one.
It further suggests that the CEZ must be established under the Sagarmala project. Further, flexible land acquisition, international standard infrastructure plus labour laws must be present to kick-start the sector.
A massive tax break has been recommended for the companies that create big employment opportunities and make huge investments.
Modification in the market access policy has been suggested by NITI Aayog for import substitution. This will pave way for preference in government procurement, as per the strategy paper.
It is said that the Chinese model has been completely analyzed by the policy organization and an unusual opportunity is found to be in the hands of India.
‘Make in India’ initiative may soon get the support of some Chinese mobile companies, as they will consider various manufacturing possibilities present in India. According to sources, this would be golden chance for this initiative.
Indian mobile phone market is one of the most competitive markets in the world. Thus, manufacturing the phones in India might certainly be a wise decision for the Chinese firms.
It is estimated that by 2017, India might become the second largest smartphone market, as the manufacturers from china are interested in joint ventures with Indian companies. So, this would be a tough competition with other countries.
The component suppliers will also come with the Chinese manufacturers. Thus, it would be easier to manufacture the phones locally. This is actually very important to establish an ecosystem for mobile phones in India.
According to the market experts, this time is perfect for such a venture, as the China market faces saturation.
As per sources, some of the component makers that would be participating in the venture would be:
|Wind-Mobi||Camera King||Far-Sighted Mobile|
However, companies that have already ventured into India are:
India will certainly provide a full-fledged manufacturing platform to the Chinese manufacturers.
Lenovo is planning to ‘Make in India’ smartphones of Lenovo and Motorola at Sriperumbudur, near Chennai. The company has tied up with Flextronics that is a competitor of Foxconn.
Two weeks after Foxconn (world’s largest contract manufacturer for electronics) announced an investment in India worth $5-billion; the Chinese giant Lenovo said that it would initiate the local manufacturing of smartphones for Motorola and Lenovo in Chennai.
This effort will definitely boost the Indian government’s ‘Make in India’ campaign.
According to Chen Xudong (the chairman, Motorola Mobility Operating Board and president (MBG Group) – Lenovo), the company, Lenovo is not new to India. Several years ago, the company identified the potential of India and therefore invested in the manufacturing of PC earlier. The present investment of Lenovo represents its long-term commitment and the potential that the company sees in the Indian market.
Lenovo said that the facility would produce around 6 million units in the current financial year and almost 12 to 15 million units for the next financial year.
Annually, the company is selling 6.4 million units, as per the market estimates and through local manufacturing in the new facility, it hopes to fulfill the domestic demand. The company says that it has not yet decided whether to start manufacturing various other items like smart watches here or export from this unit.
Chief operating officer of Lenovo India said the thrust on ‘Make in India’ campaign in India has opened up a wide plethora of opportunities for global organizations to conduct business in India.
According to him, Moto E has started rolling out while K3 note will be soon rolling out from the plant.
Trying to regain investors’ confidence, the announcement would also acts as the morale booster for Centre and the state government, as last year Nokia decided to suspend manufacturing at Sriperumbudur. That had resulted in almost 30,000 people losing their jobs.
With a view to boost electronics manufacturing, the government extended the MSIPS (Modified Special Incentive Package Scheme) by 5 years. The government also expanded its scope, in order to cover 15 new product categories.
This decision basically aims at promoting ‘Digital India’ and ‘Make in India’ initiatives. By 2020, the demand for electronics is expected to reach upto USD 400 billion in India. The electronics sector further has the potential to attract an investment of USD 100 billion as well as provide jobs to almost 28 million people.
The 15 new product categories that are included in the scheme are: consumer appliances (such as refrigerators, air conditioners, washing machines and the like), smart cards, optical fibers, Internet of Things (IoT), electronic product design and various other products.
Under the MSIPS scheme, the Indian government has also made it easier for various companies to get incentives.
According to sources, the extension of scheme is for a period of 5 years, i.e. beyond July 26, 2015.
Originally, the scheme was approved by in July 2012. It provides capital subsidy of 25% in non-SEZ units and 20% in SEZ that are engaged in manufacturing the electronics items. Basically, the original scheme was for a period of 3 years that is now extended to 5 years.
Initially, only 10 units were approved, by May 2014. According to sources, 32 proposals have been approved which would generate indirect employment for 40,000 people and direct employment for over 12,000 deserving candidates.
As per the final feasibility report by the Japanese governmental agency, Mumbai-Ahmedabad Bullet Train Project would cost nearly Rs 1 lakh crore and the first train is expected to run in the year 2024 (if the work begins in 2017).
The report submitted to the Railway Ministry by the Japan International Cooperation Agency, predicts a reduction in the travel time between Mumbai and Ahmedabad from the existing 7 hours to 2 hours. The speed of the bullet train would be over 300 km per hour.
The report estimates that the project will cost Rs 98,805 crore and the train fare could also get higher than that charged for the First AC cabin of Rajdhani Express.
An official said that the Railways department would examine the report thoroughly and decide the future course of action.
A Cabinet note seeking approval for the bullet train project is likely to be prepared next month. This note would outline the project feasibility and timelines.
Report says that if the work begins in 2017, the line would be completed and made operational in 2023 and 2024 respectively.
Also, the final report suggests the fare of this bullet train that will run between Mumbai and Ahmedabad may be around one and half times more than that of the first AC of Rajdhani Express. The approximate cost would be almost INR 2,800.
By 2023, nearly 40,000 passengers are likely to avail this service every day and thus, it would be a financially viable service.
The initial estimated cost of INR 65,000 crore has gone up after considering various factors like interest and price escalation.
The Japanese agency recommended that the line must be constructed on the internationally accepted standard gauge, as high-speed running of nearly 300 kmph is basically done on the standard gauge all around the world.
According to the senior official of the United Nations, India’s clean energy target is ahead of the global goal off UN. India has emerged as a country that has the potential to lead the world in the spectrum of sustainable energy from renewable sources.
India targets almost 175 GW of renewable energy capacity by the year 2022. This target includes 60 GW of wind power, 100 GW of solar, 5 GW of small hydro power and 10 GW of biomass-fired power.
A special representative of the UN Secretary General, Yumkella, said that over the past decade, India was used as a laboratory to bring convergence between climate change and energy access, recognizing that still almost 2.7 billion people all over the world rely on cow dung, firewood and charcoal to meet their primary energy needs.
The UN’s Sustainable Energy for All (SE4ALL) foresees making sustainable energy as a reality for all by the year 2030. So, the UN’s initiative, SE4ALL aims that every citizen and the entire world would have affordable energy access, by 2030. Therefore (by 2030), each and every country in the world should feel energy secure while ensuring that our awareness to cleaner energy to climate change is taken care of.
At the ‘Skill India’ launch, PM Modi said that India should evolve as the HR (human resource) capital of the world. The mission of Skill India basically aims at providing vocational training to youth across the country.
He says that just as China is the manufacturing factory of the world, in the same way, India has the potential to become the human resource capital of the world.
He further adds that the entire world needs skilled people. Hence, a huge market of job is available. So, India must map such needs and train the youth accordingly. India has the potential and expertise to provide a skilled workforce of about 4 to 5 crore, if the countrymen are provided with dynamic training in skills.
The prime minister says that this programme is a war against poverty, as training shall be provided to the poor lot. This way the poor individuals would be trained in specific skills and prove to be gems for the country. He further says that this programme is not just limited to skill training; rather it involves entrepreneurship.
In line with the rapid changing world and technology, the countrymen need to have futuristic vision, so as to plan for the next 10 years. He also understands the need for regular interaction between technology and industry experts.
Observing several developed nations which are abound of wealth, but lack in human resources, he says that in the near future, India will be the only country that may cater to this type of requirement if proper training for skills is provided here.
He also puts light on the training institutes in India that need to be dynamic. Indian citizen ns have huge capabilities and since centuries, this has been recognized world-over. So, to regain such expertise, training for skills holds utmost importance.
According to him, after the Indian IITs, its now the time for Indian ITIs (Industrial Training Institutes) to prove their worth globally.
The event saw a number of Union ministers including the defence minister Manohar Parrikar and the finance minister Arun Jaitley as well as chief ministers. Senior industry leaders and various foreign dignitaries were among the invitees.