New Delhi: The mobile handset industry, which employs over 6.7 lakh persons, has expressed concern over reduction of export incentives to 2% and said that it will lead to massive job losses.
Industry body India Cellular and Electronics Association (ICEA) said discussions have been going around between the industry and the government for the past three months to replace the Merchandise Exports from India Scheme with a WTO-compliant scheme but the Director General of Foreign Trade surprisingly notified downward revision of the export incentive.
"Sudden U-turn in policy will devastate exports and lead to massive job losses...This not only gives way to extreme policy uncertainty which is likely to scare investors -- both global value chains and Indian champions -- but in fact, will result in immediate collapse of exports of one of the few sectors that has responded positively to the MEIS scheme," ICEA Chair Pankaj Mohindroo said.
