More Incentives Needed to Boost Exports: Xiaomi

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  • Muralikrishnan B, chief operating officer, Xiaomi India told PTI that it’s important for India to transition from a perspective of import-substitution to export-orientation
  • Taiwanese giant Foxconn, also known as Hon Hai Precision Industry Co. Ltd manufactures Xiaomi phones in India

According to a report by PTI, Chinese Smartphone maker Xiaomi has suggested the Indian government to roll out more incentives to boost exports and bring greater clarity around RoDTEP rules. Remission of Duties or Taxes on Export Product (RoDTEP) is a new scheme will replace the Merchandise Export Incentive Scheme (MEIS) from January 1, 2020.

Muralikrishnan B, chief operating officer, Xiaomi India told PTI that it’s important for India to transition from a perspective of import-substitution to export-orientation.

Waiting for further clarity

He added that it is unfortunate that MEIS was WTO non-compliant. They have RoDTEP but they are waiting for further clarity and how much that could address the structural disabilities. There are inconsistencies vis-a-vis market reality when it comes to duty drawback.

He explained that if the Indian government can also get neighboring countries to accept BIS standards, it would help push exports from India as there will be lesser compliance requirements.

Muralikrishnan further stated that if the government sets up labs in India that provide CE certification, it will also help export devices to market like the European Union. The state governments also have an important role to play as they need to provide plug and play infrastructure and a conducive environment for setting up manufacturing parks for domestic requirements as well as exports.

Taiwanese giant Foxconn, also known as Hon Hai Precision Industry Co. Ltd manufactures Xiaomi phones in India. The manufacturing is being done at Xiaomi’s two facilities — one at the Sri City special economic zone in Andhra Pradesh and the other at Sriperumbudur in Tamil Nadu.

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