Government proposal of ₹ 7,000 cr PLI for insignificant computer hardware: MAIT
The Association of Information Technology Manufacturers (MAIT), whose members include Apple, Dell, HP and Lenovo, wants the government to address various handicaps facing the industry, including improving the export infrastructure to support growth under the PLI program.
“I don’t think for PCs if you move and reposition the supply from China or other parts of the world, that will be possible with these types of funds. They are very trivial.”
You gave them (mobile industry) rights arbitration earlier. There was some foundation created for mobile manufacturing; whereas, for PCs, laptops, servers and tablets, there was a reverse duty regime from 2005 to 2014 which impacted the manufacturing of these products. Now we have to reinvent, Kunkolienker said.
Under ITA-1, members of the World Trade Organization (WTO) were not allowed to impose tariff barriers on computer products, which include personal computers, set-top boxes and servers.
The application of ITA-1 has led many companies to close their manufacturing facilities in India as the import of finished computer products has become cheaper compared to their production in the country.
Kunkolienker said there was a need to recreate and reposition the Indian market when the government tried to embark on more creative education for online learning.
There is immense potential for Indian MSMEs (micro, small and medium enterprises) to be part of the global manufacturing ecosystem. MSMEs are unable to borrow capital, Kunkolienker said.
He said that currently India has major challenges in terms of the manufacturing ecosystem, including logistics.
“For India to really materialize, you have to tackle the handicaps. It won’t be possible by giving 2%. It doesn’t even cover the loss of transactions. Relocating the supply chain is not an easy task. target.
“To achieve this, you have to have an export-centric approach. Shipping companies can offer competitive rates. We support the export-led growth strategy, but the export infrastructure is very uncompetitive,” Kunkolienker said.
The PLI program was recently expanded to 10 sectors, after registering the traction of global investors in the mobile manufacturing segment.
Kunkolienker said that a consolidated and integrated approach is needed to facilitate investments, even under PLI programs.
The program has been extended to 10 sectors. A company that makes motherboards can use the same lines to make routers. Now the routers will be telecommunications and the DoT will do it, he said.
He added that now a motherboard manufacturer must comply with telecommunications PLI rules and set up a different factory to gain the advantage when the same factory can manufacture components for computer and telecommunications products. “An integrated approach is needed to manage this.”
The PLI program has been extended to cover advanced cell chemistry batteries, electronics and technology products, telecommunications and network products, solar photovoltaic modules, white goods, textiles, food products, pharmaceutical drugs and special steels.
The government needs to work on aggregating demand. The mobile is a device of connectivity, but the mobile is not a device of creativity.
Just as the government has proposed a CAS (Conditional Access System) policy which has increased the demand for set-top boxes, the government can also come up with policies to create demand for PCs. Consolidated efforts will make India a good plate rotating for manufacturing, Kunkolienker said.
