Indian Economy News

Government's decision to extend of MSIPS scheme by another five years expected to attract investments

  • IBEF
  • July 24, 2015

New Delhi: The Government’s decision to extend the Modified Special Incentive Package Scheme (MSIPS) by five years has been viewed positively by the Indian electronics manufacturing industry. Not only was the MSIPS (due to expire on July 26, 2015) extended by five more years, the scheme has also been expanded to cover 15 new product categories with a view to boost manufacturing of electronics sector by bringing investments.  Under the scheme, incentives are extended to new electronics system design and manufacturing units and expansion, modernisation and diversification of existing units. With the new government’s focus on manufacturing in the form of ‘Make in India’ initiative, in the past 14 months alone, 32 proposals with committed investments of Rs 9,000 crores (US$ 1.4 billion) have been received compared to investments worth Rs 1,369 crore (US$ 213 million) earlier since July 2012. The Federation of Indian Export Organisations (FIEO) has lauded this decision and expects that it will boost manufacturing in the electronics sector, thereby reducing dependency on imports.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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