In order to reduce dependency on China for electronics manufacturing, India is finalising a proposal to set up an Electronics Commission. The commission would push electronics manufacturing in the country by removing roadblocks and hand-holding companies to speed up growth.
The independent commission on electronics would see to the growth of electronics manufacturing from the foundry-onward stage. It would also ensure that the government’s proposed incentives to set up large scale manufacturing units in India are given a boost. The commission would also aim to transform India into an export hub for electronics.
The commission would assist industry players on all matters related to design and manufacturing. It would also address hurdles of inadequate infrastructure, high cost of finance, inadequate power, and skill sets as well as limited design capabilities, stated the daily.
Electronics account for 32 per cent of India’s total imports from China amounting to $65.26 billion on 2019-20. As per estimates, the domestic electronics hardware manufacturing sector takes a hit of around 8.5-11 per cent in pricing due to multiple issues. Domestic electronics hardware manufacturing sector lacks a level playing field vis-a-vis other nations.
In an attempt to address this and boost domestic manufacturing of electronics, the government had recently announced a Rs 40,000 crore production-linked incentive scheme. “The PLI scheme shall extend an incentive of 4 per cent to 6 per cent on incremental sales (over the base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years subsequent to the base year as defined,” the cabinet had said in April.-Business Today