The India Electronics
Association (IESA) has opened its first international office in Taiwan
as India is increasingly looking at the country to feed its growing demand for electronics
and the chips that power them and reducing its reliance on China.
IESA, which functions as a lobby group for India's electronics manufacturing
industry, is not only looking at promoting sourcing components from Taiwan
but to also get manufacturers from the country to set up shop in India.
"India has seen emerging green shoots in the Electronics, Systems Design and Manufacturing
space in the recent times. We believe India has a strong proposition to offer to Taiwanese investors, and look forward to enabling the trade bridge between the countries," said Ashwini K Aggarwal, Chairman, IESA.
India's new policy to boost semiconductor
and electronics manufacturing
in the country has been received positively by the industry, but in order for the sector to grow at the pace required collaboration with countries and industries with experience in the space is required.
A grouping of Taiwanese electronic firms has begun the groundwork to set up a cluster on the outskirts of Bengaluru, which potentially could see investments of nearly $300-500 million over the next few years. Some of these firms are looking to collaborate with local companies
to transfer knowledge and build a strong ecosystem that would become a base not just for India, but also similar global markets.
Moreover, as ties between India and China
sour, the country is looking at a partner which is strategically aligned to its needs. Today China
is the largest supplier of electronics
and electronic components to India and is also the largest supplier of low-cost solar panels which is hurting the local industry.
market is expected to reach $100 billion in size by the end of 2017 and grow to about $230 billion by 2020. Today, while the government's Make in India
mission has made it more economical to manufacture devices such as smartphones locally, the work industries do here is largely low-tech assembly.