NEW DELHI: The government has streamlined the visa process and established a more efficient procedure for companies associated with the Production Linked Incentive Scheme in India, said S. Krishnan, Secretary of the Ministry of Electronics and Information Technology (MeitY).
Speaking at the launch of the BIF report on India’s Mobile Manufacturing Ecosystem: Challenges and Opportunities, Krishnan also mentioned that India will focus on component manufacturing for global exports, not just domestic needs.
Additionally, the country aims to increase domestic value addition from 18-20% to 35%. "We've established a faster, more efficient process, prioritizing essential visas for the electronics sector," said Krishnan.
The secretary urged industry leaders to focus on India-designed and India-developed mobile phones.
India has emerged as the world's second-largest mobile phone manufacturer, with annual production valued at ₹4.1 lakh crore. Overall, India’s electronic manufacturing totals ₹9.52 lakh crore.
The report launched by the Broadband India Forum (BIF) noted that India's domestic value addition (DVA) is 18-20% compared to China's 40%. Fifteen years ago, when China started assembly, its DVA was 3.6%. Currently, India imposes tariff rates exceeding 10% on 35 components, while China maintains relatively lower import tariffs, with a ceiling of 10%.
The report recommended that reducing additional cost disabilities, such as corporate tax, logistics, skill gaps, and the cost of power, could contribute to lowering manufacturing costs by another 4-5%. The report also urged the Department of Telecommunications (DoT) to revoke the requirement for IMEI registration for mobile phones intended for export.