IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 12 Jul 2012 | Removal date: 03 Aug 2015

Financial grant

On 12 July 2012, the Government of India approved the Modified Special Incentive Package Scheme (M-SIPS) to promote large scale manufacturing in the Electronics System Design and Manufacturing (ESDM) sector and create an indigenous manufacturing eco-system for electronics in the country. The Scheme has been announced with an application window of 3 years from the date of the notification. This window was later extended until July 2020 on 3 August 2015 (see related State Act).
 
The scheme provides a subsidy of 20% of the capital expenditure for units located in Special Economic Zones (SEZs) and 25% for non-SEZ units, where capital expenditure includes plant & machinery, land, building, and technology including R&D. Further incentives like reimbursement of excise or Countervailing Duty on capital equipment for all non-SEZ units and reimbursement of central taxes and duties for high technology and high capital units have been provided.
 
The scheme is applicable to investments in new ESDM units and expansion of capacity/modernization and diversification of existing ESDM units for 29 categories of ESDM products inlcuding for all products in the value chain, units providing services for such manufacture and also for relocated units from abroad.
 
The incentives are available for investments made within 10 years of the approval of the new unit. The overall financial ceiling for this programme is set to INR 10,000 crores (appx. USD 1.6 billion) during the 12th Five Year Plan.
 
The Special Incentive Package was originally introduced in 2007 but limited incentives for investments in manufacture of semi-conductors, LCD/LED or other emerging displays, solar cells, photovoltaics, other advanced micro and nano technology products. Apart from the addition of several new sectors, the MSIPS also has a larger budget for investments.

Further amendments have been made under the scheme in August 2015 and January 2017. Please see related State Acts.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries. 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

354 Chemical products n.e.c.
3818 Chemical elements doped for use in electronics, in the form of discs, wafers or similar forms; chemical compounds doped for use in electronics.
381800 Chemical elements doped for use in electronics, in the form of discs, wafers or similar forms; chemical compounds doped for use in electronics.
449 Other special-purpose machinery & parts
8443 Printing machinery used for printing by means of plates, cylinders and other printing components of heading 84.42; other printers, copying machines and facsimile machines, whether or not combined; parts and accessories thereof.
844332 Other, capable of connecting to an automatic data processing machine or to a network
844339 Other
452 Computing machinery & parts
8471 Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included.
847130 Portable automatic data processing machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display
847141 Comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined
847149 Other, presented in the form of systems
847150 Processing units other than those of subheading 8471.41 or 8471.49, whether or not containing in the same housing one or two of the following types of unit : storage units, input units, output units
847160 Input or output units, whether or not containing storage units in the same housing
847170 Storage units
847180 Other units of automatic data processing machines
847190 Other
8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a lo
851769 Other
461 Electric motors, generators & transformers; parts
8504 Electrical transformers, static converters (for example, rectifiers) and inductors.
850410 Ballasts for discharge lamps or tubes
850421 Having a power handling capacity not exceeding 650 kVA
850422 Having a power handling capacity exceeding 650 kVA but not exceeding 10,000 kVA
850423 Having a power handling capacity exceeding 10,000 kVA
850431 Having a power handling capacity not exceeding 1 kVA
850432 Having a power handling capacity exceeding 1 kVA but not exceeding 16 kVA
850433 Having a power handling capacity exceeding 16 kVA but not exceeding 500 kVA
850434 Having a power handling capacity exceeding 500 kVA
850440 Static converters
850450 Other inductors
850490 Parts
462 Electricity distribution & control apparatus; parts
8535 Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, fuses, lightning arresters, voltage limiters, surge suppressors, plugs and other connectors, junction boxe
853510 Fuses
853521 For a voltage of less than 72.5 kV
853529 Other
853530 Isolating switches and makeandbreak switches
853540 Lightning arresters, voltage limiters and surge suppressors
853590 Other
8536 Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lampholders and other connectors, junction boxes), for
853610 Fuses
853620 Automatic circuit breakers
853630 Other apparatus for protecting electrical circuits
853641 For a voltage not exceeding 60 V
853649 Other
853650 Other switches
853661 Lampholders
853669 Other
853670 Connectors for optical fibres, optical fibre bundles or cables
853690 Other apparatus
469 Other electrical equipment & parts
8530 Electrical signalling, safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields (other than those of heading 86.08).
853080 Other equipment
853090 Parts
8531 Electric sound or visual signalling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 85.12 or 85.30.
853110 Burglar or fire alarms and similar apparatus
853120 Indicator panels incorporating liquid crystal devices (LCD) or light emitting diodes (LED)
853180 Other apparatus
853190 Parts
8543 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this Chapter.
854370 Other machines and apparatus
854390 Parts
471 Electronic valves & tubes; electronic components; parts
8532 Electrical capacitors, fixed, variable or adjustable (preset).
853210 Fixed capacitors designed for use in 50/60 Hz circuits and having a reactive power handling capacity of not less than 0.5 kvar (power capacitors)
853221 Tantalum
853222 Aluminium electrolytic
853223 Ceramic dielectric, single layer
853224 Ceramic dielectric, multilayer
853225 Dielectric of paper or plastics
853229 Other
853290 Parts
8533 Electrical resistors (including rheostats and potentiometers), other than heating resistors.
853310 Fixed carbon resistors, composition or film types
853321 For a power handling capacity not exceeding 20 W
853329 Other
853339 Other
853340 Other variable resistors, including rheostats and potentiometers
853390 Parts
8534 Printed circuits.
853400 Printed circuits.
8541 Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light emitting diodes; mounted piezoelectric crystals.
854110 Diodes, other than photosensitive or light emitting diodes
854121 With a dissipation rate of less than 1 W
854129 Other
854130 Thyristors, diacs and triacs, other than photosensitive devices
854140 Photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light emitting diodes
854150 Other semiconductor devices
854160 Mounted piezoelectric crystals
854190 Parts
8542 Electronic integrated circuits.
854231 Processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits
854232 Memories
854233 Amplifiers
854239 Other
854290 Parts
472 Television & radio transmitters; cameras; telephone sets
8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a lo
851711 Line telephone sets with cordless handsets
851712 Telephones for cellular networks or for other wireless networks
851718 Other
851761 Base stations
851762 Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus
8525 Transmission apparatus for radiobroadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders.
852550 Transmission apparatus
852560 Transmission apparatus incorporating reception apparatus
852580 Television cameras, digital cameras and video camera recorders
473 Broadcast recording apparatus; microphones, loudspeakers, etc.
8518 Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; audio frequency electric amp
851810 Microphones and stands therefor
851821 Single loudspeakers, mounted in their enclosures
851822 Multiple loudspeakers, mounted in the same enclosure
851829 Other
851830 Headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers
851840 Audiofrequency electric amplifiers
851850 Electric sound amplifier sets
8519 Sound recording or reproducing apparatus.
851989 Other
8521 Video recording or reproducing apparatus, whether or not incorporating a video tuner.
852110 Magnetic tapetype
852190 Other
8527 Reception apparatus for radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock.
852712 Pocketsize radio cassetteplayers
852713 Other apparatus combined with sound recording or reproducing apparatus
852719 Other
852721 Combined with sound recording or reproducing apparatus
852729 Other
852791 Combined with sound recording or reproducing apparatus
8528 Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus.
852841 Of a kind solely or principally used in an automatic data processing system of heading 84.71
852851 Of a kind solely or principally used in an automatic data processing system of heading 84.71
852859 Other
852861 Of a kind solely or principally used in an automatic data processing system of heading 84.71
852869 Other
852871 Not designed to incorporate a video display or screen
852872 Other, colour
852873 Other, monochrome
474 Parts for the goods of classes 4721 to 4733 & 4822
8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a lo
851770 Parts
8518 Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; audio frequency electric amp
851890 Parts
8522 Parts and accessories suitable for use solely or principally with the apparatus of headings 85.19 or 85.21.
852290 Other
8529 Parts suitable for use solely or principally with the apparatus of headings 85.25 to 85.28.
852910 Aerials and aerial reflectors of all kinds; parts suitable for use therewith
852990 Other
475 Disks, tapes, storage devices & other media, not recorded
" class="default-popupover-item"> 8523 Discs, tapes, solidstate nonvolatile storage devices, "smart cards" and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter
852341 Unrecorded
852351 Solidstate nonvolatile storage devices
852359 Other
476 Disks, tapes & other physical media, recorded
" class="default-popupover-item"> 8523 Discs, tapes, solidstate nonvolatile storage devices, "smart cards" and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter
852329 Other
852349 Other
852380 Other
479 Cards with magnetic strips or chip
" class="default-popupover-item"> 8523 Discs, tapes, solidstate nonvolatile storage devices, "smart cards" and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter
852352 ìSmart cardsî
481 Medical & surgical equipment & orthopaedic appliances
9018 Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electromedical apparatus and sighttesting instruments.
901812 Ultrasonic scanning apparatus
901813 Magnetic resonance imaging apparatus
901814 Scintigraphic apparatus
901819 Other
901831 Syringes, with or without needles
901832 Tubular metal needles and needles for sutures
901839 Other
901849 Other
901850 Other ophthalmic instruments and appliances
901890 Other instruments and appliances
482 Instruments & control equipment, except optical instruments
8526 Radar apparatus, radio navigational aid apparatus and radio remote control apparatus.
852610 Radar apparatus
852691 Radio navigational aid apparatus
852692 Radio remote control apparatus
9031 Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this Chapter; profile projectors.
903110 Machines for balancing mechanical parts
903120 Test benches
903149 Other
903180 Other instruments, appliances and machines
903190 Parts and accessories
483 Optical instruments & photographic equipment; parts thereof
9013 Liquid crystal devices not constituting articles provided for more specifically in other headings; lasers, other than laser diodes; other optical appliances and instruments, not specified or included elsewhere in this Chapter.
901310 Telescopic sights for fitting to arms; periscopes; telescopes designed to form parts of machines, appliances, instruments or apparatus of this Chapter or Section XVI
901320 Lasers, other than laser diodes
901380 Other devices, appliances and instruments
901390 Parts and accessories
491 Motor vehicles, trailers & semi-trailers; parts
8708 Parts and accessories of the motor vehicles of headings 87.01 to 87.05.
870810 Bumpers and parts thereof
870830 Brakes and servobrakes; parts thereof
870840 Gear boxes and parts thereof
870850 Driveaxles with differential, whether or not provided with other transmission components, and nondriving axles; parts thereof
870870 Road wheels and parts and accessories thereof
870880 Suspension systems and parts thereof (including shock absorbers)
870891 Radiators and parts thereof
870892 Silencers (mufflers) and exhaust pipes; parts thereof
870893 Clutches and parts thereof
870894 Steering wheels, steering columns and steering boxes; parts thereof
870895 Safety airbags with inflater system; parts thereof
870899 Other
492 Motor vehicle bodies; trailers & parts thereof
8708 Parts and accessories of the motor vehicles of headings 87.01 to 87.05.
870821 Safety seat belts
870829 Other
496 Aircraft & spacecraft; parts
8803 Parts of goods of heading 88.01 or 88.02.
880310 Propellers and rotors and parts thereof
880330 Other parts of aeroplanes or helicopters
880390 Other

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