By Dr Ajay Kumar, joint secretary, DeitY
Friday, March 21 2014: The Electronics System Design and Manufacturing (ESDM) sector is dominated by global giants like Intel, CISCO, Broadcom, Qualcomm, Samsung, Nokia, IBM, HP, Dell, Bosch, GE, TSMC, Sony, Panasonic, Huawei, Acer, Asus, HTC, to name a few. As a result we tend to ignore the contribution of SMEs. The SMEs are nimble-footed, lean and flexible. They are quicker in technology assimilation and in technological advancements due to their entrepreneurial nature. Not surprisingly, despite presence of big names as mentioned above, SMEs are the backbone of the strong electronics industries in countries like Taiwan, Japan, South Korea and China. Even in Germany, growth of medical electronics and industrial electronics industry is powered by SMEs. Israel has pioneered the start-up culture. In India, it is no different. We need to actively support the SMEs as part of our agenda to promote ESDM. Given that most of the Indian ESDM units fall under SME category, this is not a matter of choice.
It is with this objective that the support under Modified SIPS was reduced to units investing as low as `1 Crore. Electronic Manufacturing Cluster (EMC) scheme has been created to support common facilities which individual SMEs may find difficult to set up. Two specific infrastructure facilities coming up for SMEs are the Bhiwadi Greenfield EMC being promoted by ELCINA and the Common Facility Centre being set up in Electronic City, Bengaluru by ELCIA.
To promote start-ups, the National Policy on Electronics envisages setting up of Incubators. One such incubator has been recommended by Working Group on ESDM to be set up by STPI in Delhi. The Venture Capital Fund also provide necessary risk capital to start ups. Electronic Development Fund (EDF), envisaged in the National Policy on Electronics is meant for that purpose. While EDF approval remains in pipeline, it is heartening to see other venture funds being set up. KITVEN Fund in Karnataka is one such example. SIDBI is also proposing another national Fund. Walden India Fund should also be reality soon.
The Electronics India B2B platform created by DeitY on its website www.deity.gov.in/esdm is also meant to facilitate the collaboration needs of the SMEs. The platform hosts requests for joint ventures, technology collaborations etc.
DeitY is also encouraging mother PSUs like ECIL, BHEL, HAL, BEL, etc. to undertake vendor development programmes. The vendors of these major organizations can benefit from the various policy initiatives which Government has instituted to support the Electronics System Design and Manufacturing (ESDM) sector.
Recently, DeitY has approved two new schemes which are also aimed to further encourage the SMEs in the country. One of the schemes provides for financial assistance to SMEs for meeting stipulated standards. Under this scheme, assistance is available getting products tested to conform to standards prescribed by Government of India under its Compulsory Registration Order as well as assistance for meeting stipulated standards for exporting to other countries/ regions.
The other scheme is a national recognition of exemplary work in the ESDM sector by the industry. National awards have been institutionalized which will recognize units which show exemplary performance in terms of growth, innovation, export etc. Attractive cash prizes will accompany the national citation.
Electronics Bazaar, South Asia’s No.1 Electronics B2B magazine
