Taiwanese companies are in advanced stages of talks with the Karnataka Government to set up electronics manufacturing in the State.

About 25 Taiwanese companies are about to finalise a cluster of units in the State, say government officials. A Taiwanese delegation is in talks with the state government to finalise a plan that would also involve setting up a township that would cover the whole gamut of offerings — from manufacturing to training.

Diversification

“Taiwanese companies are keen to set up manufacturing facilities in India since we see growth in the domestic technology consumption,” Shih Chao Cho, Vice Minister of Ministry of Economic Affairs, Taiwan government, told Business Line at the electronics manufacturing expo in Bangalore.

This is also a move to diversify business away from mainland China, he added.

Last month, the Indian government said that it will provide financial support of up to Rs 50 crore for setting up a cluster that will take care of all needs for development of specific kind of electronics manufacturing, akin to government support provided for manufacturing companies in Taiwan and China. As per this scheme, the government will provide aid to special purpose vehicles for setting up such clusters.

Bilateral trade

Taiwan, which boasts of companies like Acer, HTC and other small and medium-sized companies, is trying to increase its bilateral trade with India.

At present it stands at a measly $7.4 billion as compared to the $75 billion of trade between India and China.

Currently, the size of the electronics industry is estimated at $45 billion. With software exports coming under increasing pressure due to a slowdown in developed economies, the government is in the process of kick starting a manufacturing boom that can create more jobs.

According to industry estimates, in the period 2007-2012, Indian electronics sector created a mere 2 million jobs. In the next five years, the government plans to create 20 million manufacturing jobs.

(This article was published on September 30, 2012)
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