Saturday, December 07, 2013: ELCINA is gratified to read the Prime Minister’s statement during his Inaugural address at the Indian Telecom Summit in New Delhi expressing a strong need and realization for a large electronics manufacturing base in the country. ELCINA has been representing the same in earnest to the government about the urgent need for supporting expansion of electronic system design and manufacturing (ESDM) sector where we have missed innumerable opportunities for the last two decades. Dr. Manmohan Singh agreed with the estimate that the outflow of foreign exchange will grow to USD300 billion by 2020, far exceeding the value of country’s oil imports.
The Prime Minister’s stress on strengthening local manufacturing in electronics and communications cannot be over–emphasized. He has rightly dwelt on the need to avoid a situation where India faces difficulties in financing these imports. The country should have manufacturing facilities which result in a balanced trade in electronics making India a part of global supply chain.
ELCINA is also happy to note that the government has finalized the disbursal flow of Rs.10000 crore fund to promote local telecom gear manufacturing of which Rs.9000 crore will be channelized to Indian Telecom Product Companies.
However, it is vital that the National Electronics Policy, announced a year ago, is implemented in letter and spirit. The Prime Minister’s statement of intent would have meaning only if the announced policies are implemented in a time bound and result oriented manner. ELCINA is actively involved in development of the first few Electronics Manufacturing Clusters has been tracking the M-SIPS applications being submitted by industry. Inspite of all round efforts by industry as well as Department of Electronics & IT, progress so far has been tardy and discouraging for industry. There are many issues with respect to the rules and guidelines which are very challenging at the implementation stage.
The ELCINA President, Mr Subhash Goyal stated “There has been considerable delay in approval of applications for the Modified Special Incentive Package Scheme (M-SIPS) and major investments are yet to start flowing in. It is vital that the M-SIPS policy, Electronics Manufacturing Cluster Scheme, Preferred Market Access Scheme as well as the telecom fund disbursement mentioned above, are approved for disbursal and the benefits flow to the industry. That is the only way in which confidence of the Industry will be strengthened and the fruits of these policies, launched with noble intentions will become a reality.”
This situation of sluggish implementation of National Electronics Policy needs to change. If we continue to dither the CAD will continue to mount and our economy will be even most susceptible to global economic forces.
ELCINA ELECTRONIC INDUSTRIES ASSOCIATION OF INDIA
Rajoo Goel
Secretary General
7th December, 2013
For Favour of Publication
