Electronics production to cross Rs 1.55 lakh cr

Electronics hardware production in the country is expected to grow by 27.6% in 2011-12 and cross Rs 155,397 crore ($33 billion), the Economic Survey said today.

The survey estimates that electronic hardware production, which is vital for strategic and security concerns of the country, will reach a size of around Rs 1,21,760 crore (at exchange rate of Rs 47.09 against dollar) with growth of 10% over previous fiscal.

Electronics hardware exports is expected to grow by 12.8% and cross Rs 47,090 crore ($10 billion) in 2011-12 as against Rs 41,721 core ($8.86 billion) in 2010-11, the survey said.

The government, in the draft National Policy on Electronics (NPE), has estimated that the electronics system design and manufacturing industry will reach a turnover of $400 billion by 2020, involving investment of about $100 billion.

This in turn create employment opportunities for 28 million.

The draft NPE, which was released on October 3, 2011, has made various proposal including a 10-year stable tax regime, setting up of electronic chip production plants and around 200 electronic hubs.

In February this year, the government has already approved preferential market access for electronic products made in India to boost indigenous manufacturing.

Electronic products with minimum 25% content from India are to be given preference in government procurement in the first year, while local value addition has to be increased by five% every year with maximum of 45% over period of five years, the new rules said.

The new National Telecom Policy, which is expected to be operational by June this year, also aims to strengthen manufacturing of telecom equipment in the country.

The NTP 2012 proposes to set up a fund for promoting indigenous R&D, intellectual property rights (IPR) creation, manufacturing and deployment of telecom products, the Survey added.