NEW DELHI: NITI Aayog is likely to seek Union Cabinet approval in a fortnight for a long-term policy to boost manufacturing of electronic products, which will provide a host of incentives like tax holiday to attract investment. "NITI Aayog has almost finalised a policy for encouraging manufacturing of electronics in the country, which is likely to be placed before the Union Cabinet for its approval," a source said.In view of great potential of electronics manufacturing sector, NITI Aayog has prepared a draft strategy paper titled 'Make in India-Strategy for Electronic Products'.NITI put the draft in public domain for comments in May this year. The stakeholders and the general public were asked to submit the views and comments by June 30, 2016.Aayog had suggested a 10-year tax holiday for companies investing over $1 billion in electronics manufacturing activities. "We would also want to provide for the 10-year tax holiday on investments of $1 billion or more that can also create 20,000 jobs. Therefore, India must reorient its policy to ensure the industry becomes competitive in export markets.India's domestic consumption of electronics hardware in 2014-15 was $63.6 billion while imports accounted for 58 per cent of this figure.NITI suggested that the country needs to forge free trade agreements (FTAs) to create duty-free market for electronic goods.

Source: Economic Times August 21, 2016 06:22 UTC