The India Electronics and Semiconductor Association (IESA) has estimated that the Indian Electronic System and Design Manufacturing (EDSM) industry is expected to attract investment worth about Rs 50 billion over the next 2-3 years. The growth in sales of electronic products such as mobile phones and tablets has led to the increased interest from foreign firms, who are now looking at setting up a manufacturing base in the country.
As per the IESA, the EDSM industry is expected to attract investment proposals of over Rs 100 billion in the next two-three years under the Modified Special Incentive Package Scheme (M-SIPS), of which about Rs 50 billion is expected to be approved.
The association is already working towards establishing strong relations with ESDM companies of many countries through signing MoUs with the electronics trade bodies, such as Taipei Computer Association of Taiwan and Business Support Center of Japan. Further, IESA is of the view that while it is larger enterprises are expected to enter into the Indian manufacturing space, it is the small and medium enterprises from Japan, Taiwan, Singapore and other countries that have the potential to make a broader impact in the Indian market.
