Five-point start to push more ESDM in India

BANGALORE, INDIA: What's going on with the Indan semiconductor industry, or better still, ESDM (electronics system design and manufacturing)?

Somshubhro (Som) Pal Choudhury, MD, Analog Devices India, has tried to answer this question by providing five key points for the Indian ESDM industry. These are:

1) Remove inverted trade barriers - Currently, there is lower import duty on final products than components. I have heard it too many times from customers.

2) Tax incentives and other financial incentives - Tax Incentives to do more R&D and high-value work (every company in the US gets huge tax breaks for R&D), manufacturing incentives (MSIPS and clusters, which are already on) and tax incentives for smaller to mid-size companies to turn the tide to more R&D than trading (a positive impact on their P&L statements).

3) Ecosystem development - Develop component ecosystem, fab, testing labs, certification labs, and focus on incentivizing EMSes to scale up their set ups in India. In fact, focus on scaling EMSes by incentivizing them more.

4) Infrastructure - Primarily power! Running on diesel gensets is expensive.

5) Single window for all clearances to set up any manufacturing, logistics improvement and quick approvals to improve Just in Time (JIT) delivery - The complaint is that it takes considerable longer time to get components delivered to the EMSes and JIT is severely impacted.

Well, are there any takers?