India is set to establish itself as the world’s powerhouse in electronics and semiconductor products in the coming times. It is reported that the task force constituted by the Ministry of Electronics and Information Technology (MeitY) to enhance India’s capabilities in electronics and semiconductor products may recommend an allocation of Rs 44,000 crore from 2024 to 2030. According to a Business Standard report, the task force, headed by Ajay K. Sood, the principal scientific adviser to the government, has proposed substantial incentives.
How much amount is recommended for whom
According to the report, the proposal includes a recommendation of Rs 15,000 crore for electronic products (systems), Rs 11,000 crore for semiconductor products and Rs 18,000 crore for initiatives such as skill development, infrastructure, logistics and technology acquisition. There is talk that these recommendations, awaiting government approval, could match the scale of the production-linked incentive (PLI) scheme for mobile devices and electronics. The task force, formed in January, includes industry prominent figures such as HCL founder and EPIC Foundation chairman Ajay Chaudhary and Dixon Technologies MD Sunil Vachani.
51 percent shareholding in the hands of Indians
The task force’s proposal focuses specifically on benefiting Indian companies, setting stringent criteria to define an Indian company as one in which 51 per cent shareholding is in the hands of Indians, headquartered in India and all global profits and benefits accrue to the Indian parent company. The task force also advocates extending the PLI scheme to 2030, enhancing taxation policies for research and development, and promoting Indian products globally through subsidies and brand promotion.
So many products were identified
Ajay Chowdhary stressed the need to start now to reduce India’s electronics import bill. He said the task force aims to simplify business operations for global firms designing products in India, and propose strategies to manage and leverage standard essential patents (SEPs) to protect domestic companies. 30 essential electronic products and 40 types of chips needed for India’s requirements have been identified. The report outlines the potential for the electronics market to grow to $3 trillion by 2047, with an export target of $1 trillion.
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