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
Wanted: an ecosystem for Indian Electronics
The sixth edition ofthe Indian Semiconductor Association’s annual vision summit, opened in Bangalore, Monday with a strong pleato government, to recognizeelectronic design and manufacturing as parts of the same ecosystem which had the potential tocontribute 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 growfrom today’s$ 4.4 billion to $80 in the same time span.
Equally significantly the domestic market had matured andwas already worth $ 45 billion – a number that could hit $ 125 billionas 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 countryhas pointed to the huge gapbetween supply and demand for electronicsitems-- with domestic production meeting less than half of the demand.
It has recommendedthe establishment of a National Electronics Mission;promotion ofclusters on the lines of Noida near Delhi and Sriperumbudur in Tamil Nadu;encouragementfor ‘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 summithighlightedthe innovation flowing from the Indian semiconductor industryin a special showcase on which report separately. India and Israel were the major country partners this year