—CT News Bureau
New Delhi, July 8: Union Budget 2014 should focus on building the domestic electronics industry, from security to self-reliance as well as future business potential, which is very important for national agenda, the India Electronics and Semiconductor Association (IESA) said.
M N Vidyashankar, President, IESA feels India is poised to become the next electronics manufacturing hub and sought government’s support to help them to take the country to the next level. “But to achieve this the government should look into the areas which are creating bottlenecks,” he said.
IESA believes that the electronics industry can create an ecosystem in India, including high tech manufacturing of electronics subsystems, electronics manufacturing clusters, semiconductor fabs and ATMP units, which can provide employment to 27 million people in the next 10 years.
“We believe India is moving in the right direction and appreciate the government’s initiatives to enable India as the manufacturing destination with continued focus on building more greenfield and brownfield electronics manufacturing clusters and incubation centres to create the ecosystem and promote the idea of entrepreneurship and innovation,” he said.
According to IESA, the present duty structure is a roadblock for the Indian manufacturing companies where components used to make finished electronic products attract Basic Customs Duty (BCD), but finished products do not. This makes it unviable to manufacture these products in India.
The budget should look into the high requirement for a Deemed Export status for electronic and semiconductor sector to address disabilities and have preference for local value added manufactured products.
IESA also urged that, government should create a faster approval mechanism of electronic development fund with greater incentivisation to R&D and extended support of the government to the companies who have shown willingness to help us in creating the ESDM ecosystem in India would be welcome.