India can become global hub for electronics manufacturing: P P Chaudhary

Speaking at an Assocham event held in New Delhi, he said, “Two push and pull factors are working in favour of India and the complete ecosystem has been generated, the pull factor is looking at the 1.25 billion population and the vast area as such every company intends to invest in this country. The push factor is that all across the globe, while per hour professional and engineering charges come to more than $3.5 but in India it is less than even $1.” 

Hence, according to Chaudhary, this is a place where these two factors, pull and push can work in favour of India and above all, the overall cost for creating the manufacturing hub in the country is much less than in other parts of the world.

Stressing on the need for India to promote research and development to stay ahead and keep abreast of technology in this digital age, the Minister said, “There is a need for developing a commercially viable research ecosystem funded by the government, industry and academia to promote the next wave of electronic technology in the country and innovations in our journey to becoming a developed nation.”

Considering that demand for electronic hardware in India is projected to increase from $45 billion in 2009 to $400 billion by 2020, it represents huge opportunity for making investments and attaining huge growth in electronics manufacturing sector. Ministry of Electronics and IT has initiated various schemes like MSIPS, EMCs, ITIR, EDF and others to attract global companies to set up their manufacturing base in India.

“The inherent objective of these policies and schemes is to bring about a fundamental shift in the nature of foreign investments coming to the country rather than being just a low-cost manufacturing destination. India is acknowledged as a true partner which adds significant value in production cycle of these products,” said Chaudhary.

The Union Government has also amended its general financial rules and made special provision for its digital procurement platform, government e-market place to give a boost to the start-ups and for local manufacturing of goods and services in the country.

Highlighting that availability of skilled manpower is another pre-requisite for developing robust manufacturing ecosystem in the country, Chaudhary said, “Under the Digital India programme, my Ministry has initiated a scheme for skill development in ESDM sector which shall cover all the state and UTs of the country in order to facilitate creation of an ecosystem for development of ESDM.”