The Indian electronics industry has majorly relied on imports to meet the rising demand for electronics products. Basic commodities like mobile phone, television, tablet PC and other products are being sourced from markets like China, USA etc. But all this could change now considering the country’s electronics body will be setting up an electronics development fund, PVG Menon, president, India Semiconductor Association reportedly said, according to a TOI report.
The proposed fund is expected to be inaugurated next month in Bengaluru. The government has planned a $2 billion overall fund, which will include separate funds for different segments along the value chain in electronics manufacturing. “The sectoral funds may happen first, and will have private participation,” Menon said.
The fund’s objective is to grow the electronics manufacturing sector in India and negate the burden on resorting to imports.
A report by ISA and research firm Frost & Sullivan estimates that 65 per cent of the demand for electronics products is being met by imports. “In the absence of policy interventions, imports are likely to grow from $28 billion in 2011 to $42 billion in 2015,” it said. Before long, it could cross India’s oil import bill.
India’s consumption of electronics products such as TVs, mobiles, PCs, tablets and set-top boxes is rising rapidly. Simultaneously, electronics is becoming an increasing part of sectors like automotive, manufacturing, power, and defense, as per the report.
