While a climate of uncertainty swirls around US-China trade relations, India remains a proactive global manufacturing hub, with favorable design, manufacturing, exports, and intellectual property protection for global OEMs. Combined with India’s relative political and economic stability, the added incentives created by Goods and Services Tax (GST) and the Make in India program are expected to spur a dramatic uptick in the nation’s share of the global electronics manufacturing market.
- Goods & Services Tax: India’s nationwide GST program represents a uniform, transparent tax code for all Indian businesses, replacing a convoluted regional tax structure, where 29 states independently levied their own complicated schedules of surcharges, excise tariffs, and other taxes. GST mitigates the economic burden of multiple cascading local taxes compounded on a single product.
- Make in India Program: Incentives and policies to promote investment and protect intellectual property. It includes new delicensing and deregulation measures to eliminate red tape and other bureaucratic roadblocks to increase speed and transparency. Also added, state-sponsored grants and rebates for small-to-medium enterprises while rewarding facilities that meet India’s green technology standards.
- Special Economic Zones: We have two world-class manufacturing facilities located in Chennai, India, strategically located within an SEZ, eliminating domestic tariffs while providing other incentives, including fast-track customs clearances and zero duties for import and export.