BANGALORE, INDIA: Indian Semiconductor Association (ISA) today announced the recommendations of Sub committee of Task Force set up by the Department of IT, Government of India for promoting the electronics system design and manufacturing ecosystem( ESDM) in India at the Vision 2010.

The Taskforce committee is chaired by Ajay Chowdhary, chairman and CEO, HCL Infosystems with various sub-committee comprising Som Mittal, president, NASSCOM (IT & BPO); B.V. Naidu, chairman, ISA and chairman and CEO, Sagitaur Ventures (Electronic Systems Design and Manufacturing Ecosystem), Kiran Karnik, former president, NASSCOM (Strategic Electronics).

The current Indian electronics/semiconductor industry is estimated at $45 billion. The domestic manufacturing companies can contribute 20 per cent of GPD by 2020.

According to the Government of India the industry needs that would foster growth for electronics industry are - increasing value addition, implementation of best practices, catering to the needs of domestic and global market by creating innovative product designs and R&D, driving cost competitiveness.

ISA Chairman B V Naidu 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 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.”

He said this sector needs special attention from the Government of India by giving it the strategic importance to set up a national electronics mission to promote the sector.

Naidu added that ISA is fully geared to work along with the Government of India and the state governments to promote this sector. The ISA vision summit is the beginning of a new wave in this direction, he observed.

Long-term vision of the government should focus on access to public services, healthcare, energy, education, digitization and security.

Recommendations for Electronics system design sector

1.To establish a National Electronics Mission - a nodal agency for the electronics industry within DIT and with direct interface to the Prime Minister's Office (PMO).

2. To promote existing clusters and create new ones

3. To Encourage products specifically designed for India. Developmental sector can benefit from biometric readers, smart meters, micro payment devices, and low cost devices.

4. To create R&D fund to support the innovation in the country

5. Creation of a manufacturing value addition fund to provide interest linked subsidy to promote value added manufacturing and create products for India.

6. Rationalization of tax structure to encourage long term investment by the companies.

7.Promote skill development- Government needs to focus on skill development, regulations around over-time and contracts need to be flexed.

By the implementation of latest recommendations the electronics industry could increase employment rate from 4.4 million currently to 27.8 million in 2020.