IESA lauds govt's decision to push electronics manufacturing

BANGALORE, INDIA: India Electronics and Semiconductor Association (IESA), welcomes Communications and Information Technology minister Ravi Shankar Prasad's statement to provide incentives for companies to set up factories across eight cities and go ahead for greenfield Electronic Manufacturing Clusters (EMC) in seven locations and support to promote chip making facilities in the country.

"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," said M.N. Vidyashankar, P\president, IESA.

If one analyzes the value chain of electronics products, 50 percent of the value is in IP or technology, 35 percent is in components and the rest 15 percent is in system assembly and testing. Today, in India, there is a need to have a local product innovation and component eco system where IP is recognized.

From a national security point of view, the country needs to locally design and manufacture Semiconductors as well as Strategic Electronics and Telecom Network products. Industry is gearing up to leverage the favorable policies and government support to create vibrant, competitive and world-class ESDM ecosystem.