“It is critical that we ensure an uninterrupted supply for at least a year, till such time we can build up domestic capacity,” ICEA Chairman Pankaj Mohindroo said in the letter.
ICEA said that any reduction in supplies or even an indication will lead to hoarding and market distortion which can in turn push up consumer prices resulting in adverse impact on key stakeholders such as students.
“We remain extremely mindful of India’s strategic and important bilateral trade relations with countries such as the US, Japan and Korea. We not only want to support the government’s efforts to nurture these relationships but also remain committed to increasing participation of companies from these three countries in India’s electronics manufacturing sector,” Mohindroo said.
ICEA said that the server companies want the government to re-look at their inclusion in import restrictions mooted by the government for IT hardware.The industry body said that the government should make an objective assessment on the way the PLI 2.0 scheme has started to positively impact domestic production.”Realistically, 9 months after the PLI for IT Hardware has been launched, the Government may undertake a re-assessment of the investment pipeline and the supply situation before inviting the industry to discuss whether any further policy intervention is needed at that stage. It may be too early to assess the full implication of the new scheme before then,” Mohindroo said.
