The Department of Information Technology (DIT) plans to set up a dedicated fund named ‘Electronic Product Development Fund’ with an initial fund of Rs 50 billion to promote the electronics manufacturing industry in the country. The fund is expected to boost innovation, research and development (R&D) activities in the domestic hardware manufacturing industry besides addressing the issues of intellectual property rights (IPRs). The government has planned to set up such funds in view of the urgent need for intervention to promote and develop innovation, R&D, Indian IPR and manufacturing within the country for electronic products, especially those having security implications.
The idea of the fund was proposed by a task force set up by the government almost a year ago to suggest measures to stimulate the growth of information technology (IT) and the electronics hardware manufacturing industry. India’s electronics hardware production increased from Rs 844 billion in 2007-08 to touch Rs 946 billion in 2008-09, representing 12.1 per cent growth. The demand for electronics hardware in the country has been projected to increase from US$ 5 billion in 2009 to US$ 125 billion by 2014 and US$ 400 billion by 2020.