With the Ministry of Electronics and IT (MeitY) announcing the schemes to push electronics manufacturing, the national body of IT channel, FAIITA is betting big as the new scheme will cover and incentivise several electronic components such as printed circuit boards (PCB), photopolymer films and assembly, among others. In an exclusive interview to CRN India, Kaushik Pandya, President, FAIITA
shares FAIITA recent representation for this scheme and the way forward for IT channel, post lockdown
How do you view the recent proposed electronics manufacturing scheme by MeitY?
It is a very good initiative on behalf of Government of India to launch such vital and wonderful schemes. EMS and SPECS are the need of the day as significant foreign revenue drain is happening due to import of electronics. If the government is looking towards controlling the import bill against USD, the only remedy is to find an import substitute i.e. manufacturing in India or as government named it as “Make in India.” But, the biggest challenge faced by these “Make in India” units is availability of raw material such as semi-conductors and electronics components, which are being imported from countries like China and Taiwan.Hence, incentivising manufacturing of EMC and SPEC is an essential move at this very moment for India. I am sure that this will change the scenario of electronics manufacturing in India.
What are the recommendations by FAIITA to MeitY?
The total span for the application to the scheme should be expanded to five years, instead of three years. MeitY should not only identify the products to be manufactured, but they also have to be prioritised. The most important point we would like to emphase is the identification of electronic
components and semiconductors to be manufactured in India on priority basis. MeitY, with the help of a third-party agency, shall provide readily available project reports, including all the minute details to start manufacturing. Countries like Taiwan, Germany and Israel also, along with our main competitor China,have adopted this policy successfully. This can help the Government of India to reduce the import bill to a defined limit within the stipulated period. Lastly, ease of claiming the incentives under CapEx is also suggested.
How will the partner ecosystem benefit from FAIITA’s participation in this scheme?
FAIITA would be able to easily identify IT startups and entrepreneurs, give them projects, and mobilise them to take advantage of SPECS. Due to our strategic tie-up with TAITRA, TCA and Shenzen Export Processing Zone, FAIITA will be able to get many projects from them in the form of JV or TT. We have requested MeitY that FAIITA, being the largest organisation of IT trade in India, should be given
representation in EC as well as GC as a permanent member.
In the current lockdown situation, how do you view the recovery of IT channel?
This is an unpredictable situation, but I see huge challenges after the lockdown period. During the lockdown, people are sitting in their home, following government orders, but after the lockdown, the consumer, SMEs and corporates are not likely to be treating the IT industry on a priority as far as box moving is concern. On the other hand, IT solutions and services will be in high demand. Customers will look to adopt business continuity plans, as there maybe another lockdown after a month of the release of first lockdown period. The IT partners may see a business boost after this lockdown of almost one and a half month due to non-use of printers and other equipment. In a nutshell, the market will react mix and match, but this kind of unstable scenario is likely to continue till the end of August or beginning
How is FAIITA is helping its largest pool of IT channel during this period?
FAIITA will be conducting training for all its direct and indirect members. This will be a mix sessions, including mentor sessions and technical trainings. After looking at the response of the participants, we will decide on further training sessions.
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