India plans big boost to electronic hardware production

The government is planning a big boost to electronic hardware production in the country through a series of initiatives, including the setting up of a National Electronic Mission (NEM) and a dedicated Electronics Development Fund as also Semiconductor Wafer Fabs.

The move is in line with the recommendations of a task force constituted by the Department of Information Technology, on finding ways to encourage the production of electronics and IT hardware in India.

The government will create a policy environment for preferential access and procurement of electronic goods and encourage manufacture of specific high priority electronic product lines in India by providing capital grant and creation of electronic manufacturing clusters, Ashwani Kumar, minister of state for science and technology and earth sciences, said at the inaugural session of ELCINA-EFY CEO Summit today

"The challenge is to make our development inclusive, sustainable and enduring to create a leading global position in the area of electronics and IT Hardware manufacturing," the minister said.

"The demand for electronic hardware is poised for an exponential growth on account of three aspects, namely, sustained GDP growth of over 8 per cent leading to growth in per capita income and consequently, spending on electronics, infrastructure creation by government and implementation of flagship initiatives such as National e-Governance Plan and a growing young population and increase in literacy," the minister noted.

He said, over the long term, the electronics hardware sector has the potential to contribute about 20 per cent to the country's GDP. But, for this, a conducive policy framework for the establishment of electronic manufacturing industry, covering the entire spectrum starting form components to sub assemblies and the most important element - integrated chips should be in place, he said.