IESA wants level playing field for Indian electronics manufacturers

Trade body representing ESDM sector, aims to meet 50% of demand for electronic products by domestic manufacturers by 2018

India Electronics and Semiconductor Association, a premier trade body representing the ESDM sector, aims to meet 50 percent of demand for electronic products by domestic manufacturers by 2018.

It, however, feels bottlenecks with regard to high rates of taxation on import of raw materials, high cost of financing, unavailability of infrastructures etc. remain a challenge for the Indian electronics system design and manufacturing (ESDM) industry. “The Indian electronics manufacturers face 20 per cent more disadvantages compared to their Chinese and Korean peers, and addressing these disabilities remains a challenge,” Sanjeev Keskar, Chairman, IESA told Business Standard.

“There is need for providing level playing field for the local manufacturers,” he added.

At present, 65 percent of the current demand for electronics products is met by imports and the balance 35 per cent, which mainly pertain to low-end products, are manufactured locally.

The imports are likely to grow from $28 billion in 2011 to $42 billion in 2015 as the size of Indian ESDM industry, which is growing at a rate of 9.9 per cent CAGR, is anticipated to be $94.2 billion by 2015. Electronics imports, which are currently the third highest, next only to crude and gold, accounted for nearly $30 billion in 2012, and are expected to cross $50 billion in next 3 years, read an  IESA - Frost & Sullivan report prepared on Indian ESDM Market-Opportunity and Growth Plan.