Deepa Doraiswamy, industry manager, electronics, Frost & Sullivan
The Government has announced a draft manufacturing policy exclusively for the Indian electronics industry with the aim of creating employment to the tune of 28 million. Frost & Sullivan has been long pronouncing the need for an exclusive policy for promoting the Indian electronics industry given the immense potential this industry has in enabling the country?s GDP growth.
Deepa Doraiswamy, industry manager, electronics, Frost & Sullivan had highlighted the need for such a policy during our pre-budget wish list. Excerpts from her wish list:
Expectations from 2011-2012 Budget
A National Electronics Mission with Corpus Fund for Electronics Industry
Rationale:
Promotion of the electronics industry through ad-hoc policies and incentives will not bring in the desired result. The need of the hour is a National Electronics Mission aimed at all round development of the industry through a structured approach. Establishment of an empowered central agency to administer the mission, working directly under the PMO shall ensure it achieves its objective. An annual electronics industry development corpus fund to the tune of at least Rs 80-100 billion needs to be set aside. This fund shall be utilised for financing innovative start ups, for encouraging fundamental and applied research in various emerging electronics technologies and for financing establishment of semi fabs and other ecosystem units in the country.
Frost & Sullivan has time and again voiced its opinion on the need for a structured plan to grow the local electronics industry. It has opined that the Government has to play the role of an enabler to encourage the local electronics industry in scaling new horizons. Creating the right ambience for growth is the prerogative and duty of the Government as an empowered electronics industry will act as the game changer for the GDP growth. Apart from facilitating infrastructural developments that are required for the electronics industry, Frost & Sullivan had identified the following as some of the imperatives needed for bolstering growth in electronics manufacturing in the country:
? Change in strategy from ?Design led Manufacturing? to ?Demand led Manufacturing?
? Promotion of export subsidies to create an environment for electronics exports
? PPP initiatives to develop? ?Integrated Electronics Parks and Clusters?
? Promotion of tax holidays and incentives for EMS companies investing in the country
? Policy to attract investment in setting up of ecosystem companies for encouraging all round development of the ESDM sector
? Identification and promotion of ?killer application / product? segments for indigenous manufacturing including telecom equipment, mobile handsets, STB, LCD TV, LED lighting, etc.
