A strong component manufacturing base in the country is a pre-requisite for a self-reliant ESDM sector in the country. In the recent past, the focus of policy makers is on manufacturing of electronics products irrespective of the degree of value addition. Majority of inputs such as parts, Sub-Parts, Components are allowed for import at zero or minimal duty. This policy has encouraged low value added manufacturing/assembling but simultaneously has stymied the growth of the existing component manufacturing base and FDI in the sector.
Policies for promotion of electronics manufacturing have been formulated with a long term vision but their implementation has lacked the same tenacity and a long term sustained approach for promoting high value added manufacturing. A suitable policy must support large investments in manufacturing facilities for raw materials, parts, components and PCBA/EMS for electronics. This is the segment of the ESDM value chain where there is concentration of technology and requires R&D, IP creation and continuous and consistent investments if we want to create a resilient value chain in the country. This is the only way to reduce our dependence on imports and also reduce the insecurity and uncertainty which accompanies it.
The electronics manufacturing sector can be broadly classified into three tiers
Further, the same year had witnessed a massive growth in production to the value of USD 1 billion. Hyderabad houses key global players in the MSM and Mega industries sectors, such as Nvidia, Motorola, Qualcomm, AMD, CDAC, Cypress, etc., in addition to home grown companies such as BHEL, BEL, HBL, ECIL, etc. Recently, Hyderabad has attracted investments from giants such as Apple, Micromax, etc. and has cemented its position as a promising electronics investment zone on the global map.
The Vision envisaged for the Telangana Electronics Policy 2016 is: Promoting Telangana as the ideal destination for Electronics Industry through creation of sustainable ecosystem, making this industry a major contributor to employment and economy in the State Based on historical analysis as well as the projections made by industry, Telangana aspires to achieve the following by 2020.
The State seeks to achieve this aim through
Large Foreign or Domestic investments in electronic component manufacturing will happen only if India offers a cost advantage in component manufacturing. It is argued that low value added manufacturing would result in investments in component manufacturing due to demand pull. However, even low value added manufacturing will sustain if duty benefits are allowed to continue over time with increasing value addition under a PMP program.
A strong component manufacturing base in the country is a pre-requisite for a self-reliant ESDM sector in the country. In the recent past, the focus of policy makers is on manufacturing of electronics products irrespective of the degree of value addition. Majority of inputs such as parts, Sub-Parts, Components are allowed for import at zero or minimal duty. This policy has encouraged low value added manufacturing/assembling but simultaneously has stymied the growth of the existing component manufacturing base and FDI in the sector.
Policies for promotion of electronics manufacturing have been formulated with a long term vision but their implementation has lacked the same tenacity and a long term sustained approach for promoting high value added manufacturing. A suitable policy must support large investments in manufacturing facilities for raw materials, parts, components and PCBA/EMS for electronics. This is the segment of the ESDM value chain where there is concentration of technology and requires R&D, IP creation and continuous and consistent investments if we want to create a resilient value chain in the country. This is the only way to reduce our dependence on imports and also reduce the insecurity and uncertainty which accompanies it.
