While the government has announced major plans to boost electronics manufacturing in India, the industry is still not certain about it as it believes there are still issues that need to be sorted out in this regard. Recently, Communications and IT Minister Ravi Shankar Prasad said incentives would be given to companies that set up green-field units in eight cities, including Ghaziabad, Vadodara, Gandhinagar, Ahmedabad, Nagpur and Nashik. However, handset and PC makers contend that incentives apart, the government should take care of tax issues, which vary across states, and is still the most neglected area.
While experts believe that the government needs to form an economic zone if it wants the Indian industry to be at par with China, they believe the government also focus on research and development and introduce a simpler process for intellectual property rights (IPR). Sanchit Gogia, Chief Analyst at Greyhound Research opines that 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.
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