INDIA: A task force set up by the Ministry of Electronics and Information Technology (MeitY) to bolster India’s capabilities in electronic and semiconductor products is is likely to recommend an allocation of Rs 44,000 crore from 2024 to 2030, reported Business Standard.
The initiative is aimed at supporting domestic companies in developing products and establishing global brands.
Led by Ajay K Sood, the principal scientific advisor to the government, the task force proposes substantial incentives: Rs 15,000 crore for electronic products (systems), Rs 11,000 crore for semiconductor products, and Rs 18,000 crore for initiatives such as talent development, infrastructure, logistics, and technology acquisition, the BS report added.
The recommendations, awaiting government approval, could rival the scale of the production-linked incentive (PLI) scheme for mobile devices and electronics. The task force, established in January, includes prominent industry figures like Ajai Chowdhry, founder of HCL and chairman of EPIC Foundation, and Sunil Vachani, MD of Dixon Technologies.
According to the report, the task force’s proposal focuses exclusively on benefiting Indian companies, setting stringent criteria defining an Indian company as one where Indians control 51 percent of shareholding, headquartered in India, with all global profits and benefits accruing to the Indian parent company.
Ajai Chowdhry stresses the initiative’s long-term vision, stressing the need to start now to reduce India’s electronics import bill. The task force also advocates for extending the PLI scheme until 2030, enhancing taxation policies for R&D, and promoting Indian products globally through subsidies and brand promotion.
The task force aims to simplify business operations for global firms designing products in India, proposing strategies to manage and leverage standard essential patents (SEPs) to safeguard domestic companies.`
Identifying 30 essential electronic products and 40 types of chips crucial for India’s needs, the report underscores the potential growth of the electronics market to $3 trillion by 2047, with exports targeting $1 trillion. (Source: MONEYCONTROLNEWS)