India Electronics Expo Opened Chip Manufacturing in India to Get A Boost

Dubai Thursday 26th March 2015:    In the next few years, India will cover considerable ground in chip manufacturing and designing to cater to the growing domestic demand and to cut down the imports, according to Mr. RS Sharma, Secretary, Department of Electronics and Information Technology, Government of India.

The first Indian Electronics Expo organized by Electronics and Computer Software Export Promotion Council (ESC) today in New Delhi. The expo is being attended by over 125 delegates from 26 countries.  More than 30 Indian companies are displaying their electronics hardware products at the two-day expo.  The companies participating in the Expo are eyeing Middle East market for exports of their products as Middle East is a big market for electronics hardware products, informed Mr Kamal Vachani, Regional Director of ESC for the Middle East.  

Mr Sharma revealed that the government would be investing US$ 10 billion  in the chip manufacturing facilities  coming up in Gujarat and UP, where a consortium of manufacturing firms have come up to set up the production bases.  Also, India would be investing US$ 400 million in developing an Indian version of micro-processor. “These are part of the initiatives that we are taking to create an eco-system that lays focus on high ended innovation. We have created a dedicated fund known as Electronics Development Fund to leverage the use of venture capital funds to promote more start-ups in the country,” he added.

Mentioning about the advantages that India is endowed with in the production of electronics goods in the country, Mr. Sharma said that  the frugal technologies that it has evolved has a higher value quotient and are suitable for many countries which are at the same level of development. Also, India is focusing on skill development in the electronics sector, which aims at creating a highly skilled pool of technicians to Phds in electronics sector. Re-usability   of the gadgets was another plank of Indian psyche, which reflected the frugal   mind set, he added.

The Secretary said that India provided an exciting hub for electronics investment mainly on account of the surging domestic market and infrastructure, logistics and financial support being provided to the investors, be they from India or abroad. A large pool of funds is omitted to provide incentives to production in the country, which can be  availed by the investors. China, is undoubtedly is the major producer of electronic goods in the world. Of late, many of the electronics giants are embarking on a China plus strategy, mostly focusing on India. Coupled with Make in India and Digital India program initiated recently by the government, the renewed interest in electronics production  in India can help the country achieve the target set for zero import of electronics into the country by 2020.

Mr. JK Dadoo, joint Secretary, Department of Commerce, Government of India  emphasis on higher penetration of mobile phones in the country, which stands at over 900 million and building of strong digital infrastructure that would link every nook and corner of India in phases. This would open up huge business opportunities in the country. For instance, e-commerce which is fast catching up in India would touch a turnover of US$ 100 billion in the coming years, providing employment to many. In the wake of these developments, the demand for electronics would increase considerably. He hoped that with the unprecedented focus laid on electronics production in the country, both production and exports would pick up, enabling the sector to have an export status comparable to software and services exports.

Mr. Dadoo also referred to focus on R&D, skill development and incentivization of exports, particularly to focus areas that make India an attractive centre for investment

Mr Vinod Sharma, Chairman, ESC observed that India’s electronics hardware production should increase at least by 10 fold to catch up with the demand and to meet the target of achieving zero import by 2020 as envisioned by the prime minister. India, he said, produces many frugally designed products that would be relevant to countries in Africa, Latin America and CIS. He referred to the example of mosquito repellent, which has frugal designing and cheaply priced   but highly suitable to many developing countries.  

Mr D K Sareen said that in India a gradual convergence is happening among technology, communications and electronics, which is paving the way for creation of many innovative products and services. The next level of India’s innovation, he said, would come from embedded technology, where India has a natural advantage.

Mr Kamal Vachani informed that electronics hardware exports from India increasing year by year and with this facility the industry will get further boost and also venture into manufacturing of other hardware products in India.