Electronics manufacturing challenges for Narendra Modi

CyberMedia is organizing a close-door round table with Gujarat chief minister, Narendra Modi to brief BJP’s PM candidate about electronics manufacturing challenges faced by the industry.

Narendra Modi is addressing 400 CEOs in New Delhi and is also the chief guest at Cybermedia ICT Awards, a prestigious award which aims at recognizing and encouraging leaders who have built the Indian ICT Industry.

India today contributes to around 4 percent of GDP as opposed to 15 percent for the USA and China, a strategic thrust on this industry could leverage the potential beyond 10 percent. The electronics industry is importing 65 percent of electronic products and if local manufacturing eco system is built by 2020, the electronics sector could employ 28 million people, this could also aggressively promote local value addition, build competitive products and achieve large scale thereby driving value addition within our country.

The ESDMs focus should be on high value added manufacturing which includes IP/technology, components eco-system and system manufacturing. India as a design powerhouse has capabilities in semiconductor chip design and electronics systems design, creating a entrepreneurship culture by supporting innovation and rapid scaling can grow the indigenous and domestic electronics industry in India.

Indian Electronics and Semiconductor Association (IESA) and Manufacturing Association of Information Technolohgy (MAIT) advocates the following reforms:

1. Address disabilities faced by local manufacturers against import of finished product.

2. Declaring the sector as a priority sector and making concessional credit available to the sector.

3. Implementation of GST and abolishing of VAT.

4. Granting deemed export benefits to all electronics good manufactured in the country – where value-addition is greater than 30 percent.

5. Greater incentivization to R&D leading to patents/products from India – where the IPR is held within India.

6. Government needs to put in place enabling policies for manufacuturing eco-system.

7. The General Financial Rules (GFR) ,2005 for adoption of Exchange Rate Variation clause should be amended for all IT hardware product-related purchase contracts regardless of delivery period.

CEO’s participating in the closed door meeting include: Cisco (Jeff White); Google (Rajan Anandan); IBM (Shanker Annaswamy); NII (Kiran Karnik); Tech Mahindra (CP Gurnani); Nokia (P Balaji); Airtel (Akhil Gupta); COAI (Rajan Mathews); Alcatel-Lucent (Munish Seth); Dell (Alok Ohrie); Galgotia University (Dhruv Galgotia and Suneel Galgotia); HP (Neelam Dhawan); Indus Towers (Shantha Raju); PVG Menon (IESA); Rajesh Janey (EMC); Rajiv Srivastava (MAIT); Alok Bharadwaj (Canon); Reliance ADA (Gurdeep Singh); Sagitaur Ventures (BV Naidu); Samsung (Vineet Taneja); SAP (Suprakash Chaudhuri); Smart Link (KR Naik); STPI (Omkar Rai); TEMA (NK Goyal); Videocon (Raj Kumar Dhoot and Arvind Bali); and Vodafone (Sunil Sood).

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