While a climate of uncertainty swirls around U.S.-China trade relations, India remains a proactive global manufacturing hub, with favorable advantages in 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, mentioned below, are expected to spur a dramatic uptick in the nation’s share of the global electronics manufacturing market.
Goods and Services Tax: A recent overhaul of India’s commercial tax system is poised to make it an even more attractive source for electronics manufacturing and exports. In 2017, India’s new nationwide GST program was launched. It 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: This initiative was established in 2014 to enhance the country’s reputation as a world-class manufacturing center. In 2016, the government announced ambitious new incentives and policies aimed at promoting investment, fostering innovation, and protecting intellectual property, all directed toward sustaining a highly efficient, world-class manufacturing infrastructure. This included new delicensing and deregulation measures to eliminate red tape and other bureaucratic roadblocks to increase speed and transparency for foreign-based companies looking to invest. The government also announced state-sponsored grants and rebates for small-to-medium enterprises (SMEs), while rewarding facilities that meet the country’s strong green technology standards.
Syrma is excited about the continued support the Government of India has devoted toward establishing our home country as a global hub of electronics manufacturing. We contribute our 40 years of design and manufacturing expertise spanning multiple diverse markets, and we look forward to discussing how we can deliver world-class products for OEMs across the globe. We understand our home India market, familiar with its vast regulatory and selling environments. We foster growth opportunities within India through our strong technology incubation ecosystem. We also assist global OEMs seeking to enter the India market by leveraging the local supply chain and favorable operating environments for cost reductions.
Our flagship Chennai location, opened in 2006, lies within the Chennai Special Economic Zone (SEZ) for electronics manufacturing and offers generous economic incentives for imports and exports. This primary facility is within 90 minutes of the Chennai seaport and 20 minutes to the international airport, with additional road and rail, connectivity linking to the rest of India and beyond, as well as infrastructure advantages with faster import and export clearances. We also have labor force availability, both technical and manual, to rapidly scale to customer demand. Our 1,800 employees are located across 4 locations and 5 facilities: Chennai SEZ, Bargur Domestic Tariff Area (DTA), Nashik DTA, and Bawal DTA.