Wanted: an ecosystem for Indian Electronics

02nd February 2010
Wanted: an ecosystem for Indian Electronics
B V Naidu, Chairman ISA Chairman and CEO, Sagitaur Ventures India Pvt. Ltd speaks at the inauguration of the ISA Vision Summit in Bangalore, Feb. 1. Seated from left: Pradip K. Dutta, ISA Vision Summit 2010 Convener and Corporate Vice President and Managing director Synopsys, Om Prakash Rai, Director General of STPI, Richard Hyde, British Deputy High Commissioner, G Madhavan Nair, Ex Chairman, ISRO and keynote speaker

The sixth edition of  the Indian Semiconductor Association’s annual vision summit, opened in Bangalore, Monday with a strong plea  to government, to recognize  electronic design and manufacturing as parts of the same ecosystem which had the potential to  contribute a fifth of the gross domestic product within  the next decade, creating 27.8 million jobs by 2020, compared to 4.4 million today. Exports could grow  from today’s  $ 4.4 billion to $80 in the same time span.

Equally significantly the domestic market had matured and  was already worth $ 45 billion – a number that could hit $ 125 billion  as early as 2014 and $ 400 billion by 2020.

B V Naidu, Chairman ISA Chairman said “This is the beginning of a new decade which will take the electronics systems design and manufacturing sector to the level of 400 billion dollars by 2020. If we do not encourage local innovation and manufacturing, this could create a trade imbalance to the tune of $ 300 Billion by 2020. This sector needs special attention from the govt. of India by giving it the strategic importance to set up a national electronics mission to promote the sector.”

A sub committee of the Task Force set up by the Indian government for promoting  Electronic System Design and Manufacturing (ESDM) in the country    has pointed to the huge gap  between supply and demand for electronics  items  -- with domestic production meeting less than half of the demand.  

It has recommended  the establishment of a National Electronics Mission;  promotion of  clusters on the lines of Noida  near Delhi and Sriperumbudur in Tamil Nadu;  encouragement  for ‘made for India, in India’ products;  creation of an R&D fund;  and stable taxation measures and labour laws.

The Task Force includes the ISA as well as other industry bodies like MAIT, ELCINA, CEAMA and TEMA.

The 2-day ISA summit  highlighted  the innovation flowing from the Indian semiconductor industry  in a special showcase  on which report separately. India and Israel were the major country partners this year

Feb 2, 2010