New Delhi: Days after the norm for private telecom firms to source locally made electronic equipments was put on hold, electronics manufacturers body Elcina has asked the government to remain firm against international pressures.
"We urge the government to stand firm against international pressures which are largely due to short-term commercial interests of a few powerful lobbies," Elcina (Electronic Industries Association of India) General Secretary Rajoo Goel said in a statement.
Prime Minister Office last week announced to put on hold Preferential Market Access (PMA) Policy, particularly part of the policy related to private procurements, amid concern by raised by certain sections.
The move has been appreciated by leading trade body US Trade Representative.
"The recent decision by the government of India on PMA to hold in abeyance, review it and potentially modify that is positive signal," US Trade Representative Michael Froman said in Washington.
The Cabinet has last year approved PMA policy which called for "preference to domestically manufactured electronic products, in procurement of those electronic products which have security implications for the country and in Government procurement for its own use."
Goel said: "How blocking implementation of a policy will enhance security of the country when the very purpose for its formulation was to enhance national security."
Any rethink or signal of hesitation from the government at this stage can cause immense damage to the momentum created by recent policy announcement by government to boost manufacturing in the country, he added.
Following announcement of PMA Policy and National Policy on Electronics and National Telecom Policy, government has received investment proposal of around Rs 4,600 crore for manufacturing.
The government has set target of attracting Rs 25,000 crore investment in the sector.
The government has received proposal for setting 12 new electronics clusters, which are like zones that will focus house manufacturing facility along with technical institutions required for complete development of product.
ELCINA has also proposed to set-up a cluster and said that PMA policy provides a level playing field to manufacturers across the world and would be compatible with World Trade Organisations norms.
First Published: Sunday, July 14, 2013, 15:46