Indian IT Minister Ravishankar Prasad addresses the media, New Delhi June 17 2014
Indian govt moots country-wide electronic clusters: industry applauds

New Delhi, June 18 2014: The new government in Delhi has responded swiftly to the long standing demands of the  Indian electronics manufacturing industry. 
Briefing reporters about the priorities for the Department of Electronics and IT, theUnion Minister for Communications & IT, Law & Justice, Ravi Shankar Prasad, said yesterday  that electronic manufacturing would  be a key priority area. This sector has the potential to give employment to 28 million persons. 
The Ministry has identified 8 new areas for Modified Special Incentive Subsidy Scheme. This area includes Ghaziabad(UP), Vadodra & Gandhinagar(Gujarat), Nagpur, Nasik, Aurangabad & Thane (Maharashtra). 
The Ministry has also taken up development of Green Field Electronic Manufacturing Clusters in Bhopal, Bhubaneshwar, Hyderabad, Maheshwaram, Bhiwadi, Jabalpur, Hosur and Kakkanad (Kochi). 
Industry happy
Industry body IESA -- India Electronics and  Semiconductor Association--   has applauded the government plans: “These key announcements emphasize the Union government’s strategic thrust to boost our economy by strengthening design led electronics manufacturing, accelerate employment generation and attract substantial foreign capital inflows into the country,” said Ashok Chandak, Chairman, IESA. “The speed and focus of Honorable Minister in capturing industry needs in the announcement on electronics sector is very heartening and is a major milestone towards vision of making India an ESDM powerhouse,” he added.
“IESA has successfully provided inputs to the Union and various state governments on policy matters and roadmap to build “High Value Added” manufacturing eco systems in India and recently announced assistance to the Government of Odisha to set up the first Greenfield EMC in Info-valley, Bhubaneswar, under the EMC Scheme of DeitY,” saidM.N. Vidyashankar, President, IESA.

If one analyzes the value chain of electronics products, 50% of the value is in IP or technology, 35% is in components and the rest 15% is in system assembly and testing.  

See our previous story on this subject here