Though the Government has zeroed in on a big plan to boost electronics manufacturing in India, industry is not sure about the efficacy of such a move as many other issues need to be sorted out first. Communications and Information Technology Minister Ravi Shankar Prasad recently said incentives would be given to companies that set up greenfield units in eight cities, including Ghaziabad, Vadodara, Gandhinagar, Ahmedabad, Nagpur and Nashik.
“The Chinese are more competitive in putting together smartphones since the cost of production there is lower than in India. Moreover, tie-ups with international manufactures further add to the sophistication and cost of smartphones,” said Sanchit Gogia, Chief Analyst and Chief Operating Officer at Greyhound Research.
Gogia admitted that the Government’s focus on semiconductor fab facilities was bound to create opportunities for hardware and software specialists.
“Further, this will help lower the cost of businessmen who wish to set up new units or go for expansion, as the Government will provide a refund on capital expenditure,” Gogia added.
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