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backASIAtalk May, 2012

India: Electronics policy to be approved soon: Sibal

The 'National Policy on Electronics', which envisages a turnover of Rs.17.94 lakh crore ($400 billion) from India's electronic sector by 2020, is likely to be approved this month, said IT and Telecom Minister Kapil Sibal, on the sidelines of the renaming ceremony of Department of Information Technology to Department of Electronics and Information Technology (DEITY).

On the name change of the Department, Sibal said, "The introduction of electronics in the Department's name is a signal of embarking on the development of electronics in the country, a journey which is essential to undertake if the country has to realise its dual objective of accelerating the growth momentum and enabling inclusive growth and development. The renaming of the Department of Information Technology as Department of Electronics and Information Technology is reflection of the thrust which Government provides to the electronics sector.

Sibal added the new 'National Policy on Electronics' is under finalisation, now that the process of widespread consultations is over. "The policy will provide a clear road map for the development of electronics sector in the country for the coming decade."

The policy aims to promote domestic manufacturing of electronic products, and achieve a Rs.17.94 lakh crore ($400 billion) turnover by 2020, involving investment of about Rs.4.48 lakh crore ($100 billion) and employment to around 2.80 crore people.

According to Sibal, "The ministry has already initiated several initiatives for the development of electronics sector in the country. India has become the hub for semiconductor design, generating nearly Rs.10,204.08 crore ($2 billion) in revenues."

"The government has, therefore, decided to set up semiconductor wafer fabrication facility in the country and the cabinet has constituted an empowered committee to recommend technology and investors and incentives required to make the fabrication happen. In response to a global expression of interest some of the leading technology providers have shown interest in participating in the fabrication project."

Emphasising on developing human resource, Sibal said the Department is in the process of extending and expanding the 'Special Manpower Development Programme' for VLSI and chip design. The Phase II of the programme which covered 32 institutions and generated 5400 BTech/MTech and PhDs in the high tech segment is ending in March 2013. However, the Phase-III of the programme will encompass chip to system design and will cover approximately 50 institutions and target around 10,000 students including 300 PhDs.

World's largest and fastest growing Rs.78.48 lakh crore ($1.75 trillion) electronics industry is expected to reach Rs.107.62 lakh crore ($2.4 trillion) by 2020. In its proposal, DIT writes, "The demand in the Indian market was $45 billion in 2008-09 and is expected to reach Rs.17.94 lakh crore ($400 billion ) by 2020. The domestic production in 2008-09 was about Rs.1.02 lakh crore ($20 billion). However, the actual value-addition in the domestically produced electronic product is very low, ranging between 5 to 10 per cent in most cases. At the current rate of growth, the domestic production can cater to a demand of Rs.4.48 lakh crore ($100 billion) in 2020 as against a demand of Rs.17.94 lakh crore ($400 billion) and the rest would have to be met by imports. This aggregates to a demand supply gap of nearly Rs.13.45 lakh crore ($300 billion) by 2020. Unless the situation is corrected, it is likely that by 2020, the electronics import may far exceed oil imports."

Source: EETimes India - GAI

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