(Source – Siliconindia.com)
A task force convened by the Ministry of Electronics and Information Technology (Meity) has proposed a significant financial injection of Rs 44,000 crore in the electronics industry sector between 2024 and 2030 to bolster the capabilities of Indian companies in the electronics and semiconductor sectors. Chaired by Ajay K Sood, the principal scientific adviser to the government, the task force aims to transform India into a global hub for electronics manufacturing and innovation.
According to the recommendations put forth, the allocation is structured with a focus on key areas crucial for industry growth. Out of the total amount, Rs 15,000 crore is earmarked for electronic products (systems), Rs 11,000 crore for semiconductor products, and Rs 18,000 crore for various incentives encompassing talent development, common infrastructure, logistics, and technology & IP acquisition.
The task force’s proposal signifies a strategic shift towards empowering Indian companies in the electronics industry exclusively, contrasting with previous schemes that saw substantial involvement from global players. Under the new guidelines, an Indian company is defined as one where majority ownership (over 51%) rests with Indian entities, headquartered within India, ensuring all global profits and benefits flow back to the Indian parent company.
Extended Support and Policy Revisions to Drive Long-Term Growth
Advocating for an extension of the Production-Linked Incentive (PLI) scheme until 2030, the task force also calls for revisions in taxation policies to incentivise research, development, and testing activities within the country. Additionally, the recommendations include measures to enhance the brand visibility of Indian products and provide subsidies to facilitate participation in international trade, aiming to boost export competitiveness.
In a bid to attract global companies interested in designing and manufacturing products in India, the task force proposes the removal of existing barriers and the formulation of strategies to effectively manage and leverage standard essential patents (SEPs). This move is designed to safeguard domestic interests while fostering a conducive environment for global investments and collaborations.
Strategic Product Identification and Market Projections
Identifying 30 critical electronic products and 40 types of essential chips vital for India’s strategic design and branding objectives, the task force aligns its recommendations with ambitious market projections. The report forecasts the electronics market to burgeon to $3 trillion by 2047, with exports contributing $1 trillion, underlining the potential economic impact of these strategic investments.
Comprising Electronics industry stalwarts such as Ajai Chowdhry, founder of HCL and chairman of EPIC Foundation, and Sunil Vachani, MD of Dixon Technologies, alongside government representatives and sector experts, the task force brings together a wealth of experience from various disciplines crucial to shaping India’s electronics and semiconductor landscape.
The recommendations put forth by the task force underscore a pivotal moment for India’s electronics industry, aiming not only to enhance domestic capabilities but also to position the country as a formidable player in the global electronics market. With a strategic roadmap laid out, contingent upon adequate funding and policy implementation, India stands poised to harness its potential and emerge as a leader in electronics innovation and manufacturing on the global stage.
