Special Incentive Package Scheme to attract investment in Electronics Systems Design and Manufacturing

Modified Special Incentive Package Scheme (M-SIPS) to offset disability and attract investment in Electronics Systems Design and Manufacturing (ESDM) Industries

Manufacturing base of electronic products in the country is grossly inadequate in comparison to demand of such goods. Even in cases where products are manufactured in India, the extent of domestic value addition is low.

Semiconductors are at the heart of any electronic systems and constitute a signiﬁcant part of the total value of the Bill of Material (BOM). The main impediments in the way of attracting investments for manufacture of semiconductors, components and electronic products are disabilities like high cost of power and ﬁnance, high transactional costs and poor base of supply chain (components and accessories).

Presently. semiconductor wafers, semi-conductors and majority of the hi-tech components are being imported. The manufacturing capabilities for semiconductors are highly capital intensive and

have to deal with constantly changing technology. Development of supply chain is essential for the manufacture of electronic products with higher domestic value addition Therefore, Government has decided to offer a package of incentives to attract domestic and giobal investments into the Electronics Systems Design and Manufacturing (ESDM) sector within Electronics Manufacturing Clusters [EMCs) as a means to minimizing the disabilities.

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