India launches electronics repair pilot project to lure manufacturers (updated)
31/05/2023 13:02
(Adds details from release and background throughout)
BENGALURU, May 31 (Reuters) - India has launched a pilot
project to establish itself as an electronics repair hub with
certain favourable policy changes, which has already attracted
companies like Lenovo and Flex, the country's IT ministry said
on Wednesday.
The ministry did not elaborate on the policy changes, but
Reuters has reported that India plans to relax some of its
cumbersome import-export rules and environmental laws to help
foreign manufacturers to set up repair hubs in the country.
The three-month-long Electronics Repair Services Outsourcing
(ERSO) program is India's first formal attempt to capitalise on
a $100 billion global industry and follows a push by MAIT, an
industry group for IT and electronics manufacturers.
Besides, China's Lenovo 0092.HK and Singapore-based Flex
FLEX.O , electronic manufacturers like CTDI, R-Logic, and
Aforeserve have volunteered for the program, the ministry said
in a statement.
While India is seeing increased interest in electronics
manufacturing, with companies such as Apple AAPL.O pivoting
from production in China, its repair outsourcing industry has
been beleaguered by certain import-export rules.
The Indian government will test changes to lower the time
required for necessary approvals for imports and exports to a
day from as much as 10 days, Reuters has reported.
Bottlenecks in India also include an e-waste mandate that
bans companies from disposing of non-repairable products locally
- adding to their logistics costs as they have to be sent back.
The government will now allow recycling of 5% of imported
goods domestically on a trial basis, Reuters reported.
In the pilot phase India will also permit re-export of the
imported electronics goods to countries different from the
original one - currently it is banned under foreign trade rules.
(Reporting by Varun Vyas in Bengaluru and Munsif Vengattil in
New Delhi; Editing by Savio D'Souza)
((varunvyas.hebbalalu@thomsonreuters.com;))