Better late than never

- Advertisement -

This is so true with regard to the government’s belated moves to promote Indian manufacturing. It’s good that before it’s too late, the Indian electronics industry will finally get its first policy dedicated to the manufacturing sector. The draft policy has already received the nod from the Prime Minister, and the industry is hopeful that the final policy will be announced soon.

With the manufacturing sector stagnating at around 16 per cent of GDP for the last two decades, and with the demand for electronics goods steadily rising in India, this policy is long overdue. Sectors such as strategic, medical and consumer electronics are estimated to grow to US$ 400 billion by 2020. The government as well as the industry were, therefore, worried about the growing import dependence of the industry. The manufacturing policy will not only help reduce imports, but also boost the development of clusters, generate employment (as per government estimates, the new manufacturing policy will create about 100 million jobs by 2025) and upgrade skills. Already, ELCINA has been given the mandate to facilitate the setting up of the first such cluster in the Noida/Greater Noida region, and to establish the best model that can be replicated throughout the country. Manufacturing clusters are also likely to come up near existing industrial hubs like the NCR, Tamil Nadu and Gujarat, among others.
Some suggestions from the industry will help the government give a better shape to the policy. One such input was that the national investment and manufacturing zones (NIMZs) envisaged in the policy should be contiguous with freight corridors and the golden quadrilateral to ensure easy off-take of the manufactured output. Another suggestion was that tax concessions must be in line with the stipulations of the direct taxes code to be implemented in April 2012 and should be investment centric.
Realising the growing demand for electronics, states like Tamil Nadu have already attracted companies like Nokia, Samsung and others to set up their manufacturing units, due to their electronics hardware policies. To compete with Tamil Nadu, the Karnataka government has also unveiled an electronics hardware policy recently. It has identified three corridors to set up electronics hardware manufacturing hubs and has allocated different areas of hardware for each corridor. It has announced various subsidies for investors in these corridors.

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

“Don’t Let Designations Become A Wild Goose Chase”

0
In his childhood, he possessed just one sweater, meant to last through many winters. He could not join IIT Roorkee because the cost of...

“Capitalise On ‘China Plus Two,’ Where Products With Higher Value Addition Become The Focus”

0
EPIC Foundation aims to transform India into an electronics hardware product nation by collaborating with governments, universities, design houses, and startups. In a conversation...

Exclusive: Electric Two And Three Wheelers In Focus For AMP 2030

0
It seems that the Indian government is going to focus on electric two— and three-wheelers. Taking these beyond Tier 1 and 2 Indian cities...

Buzz

solar panels

Tata Power Solar And Indian Bank Forge Partnership To Propel Residential Solar Adoption

0
This collaboration aims to facilitate easy access to financing for homeowners, setting the stage for a greener future. Tata Power Solar Systems Limited (TPSSL) has...

Honda plans major EV factory construction in Canada,

0
Honda's dedication to this facility reflects its wider ecological objectives, which include a target to only offer zero-emission vehicles by 2040 and to attain...

Scoop: Finayo Plans Rs 100 Cr Financing Fund For EV Dealerships

0
While EV finance is improving in Bharath (Tier 2, 3, 4 cities, and rural India), it is still one of the biggest challenges! Can...

Important Sectors

solar panels

Tata Power Solar And Indian Bank Forge Partnership To Propel Residential Solar Adoption

0
This collaboration aims to facilitate easy access to financing for homeowners, setting the stage for a greener future. Tata Power Solar Systems Limited (TPSSL) has...

Log 9 Enters EV Asset Management Via Amphion

0
Commercial electric vehicle asset management and finance is becoming one of India's biggest emerging business opportunities. Here's Log 9 joining the segment! Log 9 has...

Honda plans major EV factory construction in Canada,

0
Honda's dedication to this facility reflects its wider ecological objectives, which include a target to only offer zero-emission vehicles by 2040 and to attain...

Scoop: Finayo Plans Rs 100 Cr Financing Fund For EV Dealerships

0
While EV finance is improving in Bharath (Tier 2, 3, 4 cities, and rural India), it is still one of the biggest challenges! Can...

Macquarie Group To Invest $1.5 Billion In Indian Fleet Electrification With Vertelo Launch

0
Vertelo has entered into a long-term lease agreement with Tata Motors, committing to purchase up to 2000 electric cars within the next three years....

Manufacturing

Honda plans major EV factory construction in Canada,

0
Honda's dedication to this facility reflects its wider ecological objectives, which include a target to only offer zero-emission vehicles by 2040 and to attain...
Sona Comstar

Sona Comstar Launches Mexico Plant For North American EV Demand

0
The new facility, established to address the increasing demand for premium driveline solutions for BEVs in North America, will focus on manufacturing differential assemblies...

Sterling Tools Inks MoU With Yongin For EV Components Facility

0
Sterling Tools announced that this strategic partnership is anticipated to bring in Rs 250 crore in business over the next five years. This collaboration...

Tata Elxsi-Renesas MCU Boosts EV Cost Efficiency And Market Speed

0
The Motor Control Unit's modular, scalable design facilitates integration across various EV applications, reducing time to market by 40%, lowering design and development costs...

Ramkrishna Forgings To Supply Powertrain Parts To Top US Electric Carmaker

0
Indian producer of rolled, forged, and machined products enter the US electric vehicle market for the first time. Ramkrishna Forgings, an Indian supplier of rolled,...