Steps that can turn India into the next global electronics powerhouse
R Swaminathan | June 27, 2014
By 2020 the demand for electronic goods in India is expected to breach the US$400 billion mark, with the import bill estimated to set the country back by US$300 billion. In fact, it is expected to trump the energy import bill. India is staring at an import nightmare of unprecedented proportions that can push the country into a spiral of high imports that would necessarily require higher external and internal borrowings. There are several South American economies that have gone down that route for us to learn our lessons and not implode.
The National Policy on Electronics (NPE) 2012 is primarily aimed at ramping up India’s Electronic Design and Manufacturing (ESDM) capability. It is by far the most comprehensive policy intervention in post-independent India to boost indigenous production of semiconductor components and chips. The policy comes on the back of a strong and sustained demand for consumer electronic goods that accounted for a hefty bill of US$125 billion last year.
However, just about 10 percent of India’s consumption was produced internally; the rest was imported. In the last two decades China has become the second largest manufacturer of electronics goods in the world with its sales revenues crossing US$840 billion in 2013. This development must necessarily be seen in the context of China having overtaken the US in 2010 to become the world’s dominant manufacturing economy. China literally beat its competitors in world manufacturing, notching up US$2.9 trillion in output in 2013. In contrast, the US generated US$2.43 trillion. The Indian sales revenues for the year 2012 stood at slightly above US $68 billion, less than even one-tenth the size of the Chinese juggernaut.
This policy paper by R. Swaminathan -- Governance Now Contributing Editor and Senior Fellow of Observer Research Foundation -- decodes and analyses China’s rapid rise as an electronic powerhouse and draws lessons for India’s efforts to become a leading global player. The paper specifically focuses on India’s National Policy of Electronics, 2012, which is possibly the most comprehensive policy framework for electronics sector in the last four decades, and suggests concrete policy and implementation measures for Indian policy makers to make the country a leading electronics manufacturing country.
The paper is particularly useful for senior management of electronics and electronics component manufacturing companies, policy researchers, decision makers, academics, top bureaucrats, consultancy professionals and industry and corporate bodies. The paper is useful for universities, think tanks and any individual interested in understanding the phenomenal rise of China as a global electronics powerhouse.
Four senior judges of the supreme court have publicly made serious allegations against the chief justice of India. Will it have wider impact on judicial discipline? I think so. I think the CJI will have to take note of it and rectify the mistakes he was making.
Two people were killed in the fire that broke out at the Polyethylene Swing Unit of Panipat Naphtha Cracker Complex on January 22. As a precautionary measure, the swing unit is temporarily under shutdown. Indian Oil Corporation said that five persons working in the nearby area came in
India is the most dangerous place in the world to be born as a baby girl. It has the dubious distinction of having 75% more chances of girl children aged between 1-5 years dying as compared to boy children. India is among the fastest growing economies in the world, with a contradicting child sex ratio worl
The trainees of 37th International Training Programme on ‘Planning and Management of Urban Services’, organised by HUDCO’s Human Settlement Management Institute, interacted with HUDCO’s CMD, M Ravi Kanth. The training programme started on January 15 and would end on March 9.
Prime minister Narendra Modi underlined the need for a consensus among the nation to realise the dream of a beautiful shared future, as he addressed the plenary session of the World Economic Forum (WEF) in Davos on Tuesday. After introductory remarks by the Forum`s founder and executive chai
REC Transmission Projects Company Ltd (RECTPCL), a subsidiary of Rural Electrification Corporation Ltd (REC), has handed over project specific special purpose vehicle (SPV) namely ERSS XXI Transmission Ltd to Power Grid Corporation of India Ltd (PGCIL). Competing alongside with the private p