India Saturday extended a package of incentives to Japan in a bid to encourage investment in Electronic System Design and Manufacturing (ESDM) in the country.
"Government of India has decided to offer a package of incentives to attract domestic and global investments into ESDM sector within Electronic Manufacturing Clusters (EMC) Schemes. In addition, the government has recently approved the proposal for setting up of two Semi-conductor Wafer Fabrication (FAB) manufacturing facilities in the country," Commerce and Industry Minister Anand Sharma told Hiromasa Yonekura, chairman, Keidanren (Japan Business Federation) at a meeting in New Delhi.
Sharma invited all FAB manufacturers in Japan to avail subsidy/other benefits/support being offered by the Indian government for establishing FAB facilities in India.
The Indian minister conveyed that Information Technology Agreement (ITA), now also known as ITA-1, a plurilateral agreement of WTO, has not benefitted India as far as manufacturing in the domestic hardware industry is concerned.
It has led to a sharp decline in investments in manufacturing of components, raw materials, parts and even electronic sub-assemblies, loss of investment in high value added manufacturing ,decline in the share of domestically manufactured electronic components.
Sharma also stressed that strengthening of cooperation in creative industries which range from design, apparel, fashion, food, household goods, music, movies, animation and traditional craft would further promote and deepen mutual understanding between the two countries.