Manufacturing ecosystem will set in with Lenovo plant: IESA

NEW DELHI: Welcoming Lenovo’s decision to establish a smartphone manufacturing plant in India, India Electronics & Semiconductor Association has said that the step would create the right ecosystem for manufacturing by small and large manufacturers in India.

The component and module eco-system will soon follow to support large-scale manufacturing for a single category- smartphones. Smaller manufacturers then will benefit from this ecosystem.

The association has said that along with smartphones, consumer electronics and set-top boxes also offer a large local market and are likely to be locally manufactured. The competitiveness is best demonstrated when companies eventually establish India as their export hub.

"The 'Make in India' initiative of the Government is taking wings. We anticipate more such announcements from both Indian and Multinational companies in the months to come," said Vinay Shenoy, Chairman, India Electronics & Semiconductor Association.

The revised MSIPS (Modified Special Incentive Package Scheme) policy notified earlier this month has extended incentives for local manufacturing of significantly larger number of products and intermediates (components/modules), especially those that are consumed locally in large volumes.