Electronics policy to prefer Indian companies over foreign players

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India has set aside objections raised by foreign electronics and telecom companies against preferential treatment to companies manufacturing equipment in India, says a mydigitalfc.com report..

The Union government has told European and American companies that preferential treatment wou­ld be given to Indian vendors in the national electronics policy being finalised now, as both preferential treatment and market access to domestic companies in electronic industry was ‘WTO complaint’.

Information technology secretary J Satyanarayana said, “Preferential market access (PMA) norms were approved by cabinet in February and are part of efforts to attain self reliance in electronics manufacturing”.

Satyanarayana said PMA norms would be applicable to foreign and domestic manufacturers setting up units in India, adding that policies in this regard were evolving. He said the goal was to have a substantial portion of electronics sourced and manufactured in India. The ministry will notify the percentage of each electronic item to be manufactured domestically each year and increase it gradually.

In an effort to take advantage of PMA norms, Chinese companies have already begun setting up manufacturing units in the country. On several occasions in the past, the Union home ministry had flagged the import of Chinese telecom equipment as a security threat.

The government had launched a fabrication plant initiative to increase interest among semiconductor manufacturers. Satyanarayana said, “Bids invited from several players were being evaluated by a high level commission headed by Sam Pitroda and V Krishnamurthy.”

He added that earlier plans of setting up fabrication plants in Hyderabad and Chandigarh were being revised and the projects are likely to be set up elsewhere

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