Electronic industry lauds UPA, wants next govt to fill loops

UPA government had announced first ever National Electronics Policy to boost domestic manufacturing and reduce dependence on imports

 

The Indian electronics industry has praised works done by the UPA government and expects the next government to accelerate implementation of policies laid down for development of the domestic industry.

"The present government has taken decisions, they have made policies.... Milestone have been done. Whosoever is the next government, whatever policy is there, should focus on execution and implementation," India Electronics and Semiconductor Association (IESA) Chairman Ashok Chandak said.

The UPA government had announced the first ever National Electronics Policy to boost domestic manufacturing and reduce dependence on imports.

The IESA has played instrumental role in pushing the agenda for setting up electronic chip plant (semiconductor fab) in the country. Semiconductor is the main hardware component that is key to the functioning of modern devices such as mobiles and computers as well as hi-tech defence equipment.

The UPA government had given approvals for setting up the first two electronic chip plants in the country that will entail a total investment of Rs 63,412 crore in February.

"The existing government has taken a number of steps to support electronics manufacturing in the last 2-3 years. The National Policy for Electronics (NPE) 2012 deserves special praise. There are a number of stumbling blocks in implementation that needs to be rectified," industry body ELCINA's Secretary General Rajoo Goel said.

India imports more than 90% of consumer electronics products and if the trend continues, these imports are projected to grow to $ 300 billion by 2020. These imports stood at $ 7 billion last year.

Goel said that less than 30% electronic components and raw materials required for local equipment manufacturing are available from domestic sources.

"Present policy caters to electronics manufacturing in general and is more suitable for equipment manufacturing & assembly activity. A special policy package is required for high value added manufacturing," he said

Goel said high cost of finance, power and logistics, regulatory and procedural problems make production expenditure 7-8% higher than imports.

The NPE envisaged providing an electronics development fund for the sector to address credit issue but the same got stuck at the level of Planning Commission.

The Consumer Electronics & Appliances Manufacturers Association, which represents electronics majors like Samsung, LG, Videocon etc, said the electronic policy was path-breaking and would have a positive effect on the electronic hardware manufacturing in the near future.