Indian electronics industry will exceed $190 billion by 2015 and grow to $400 billion by 2020, which would account for 12 per cent of the then global production, said Mr T.Vasu, President of the Electronic Industries Association of India.
To achieve this, he said, India would require an investment of over $100 billion. According to him, the current size of the Indian electronics industry is pegged at $45 billion and is growing at 25-27 per cent year on year. However, he said, it meets hardly 50 per cent of the domestic demand, and the import bill exceeds $25 billion at present.
Challenges ahead
Talking about the challenges ahead of the industry's growth, he said infrastructure bottlenecks such as high costs and availability of power, transport and logistics, complex tax regime and finance are some of the major issues.
Demanding the Government's support to create an ecosystem for a globally competitive electronics sector, he said the Government should come forward to facilitate setting up of a semiconductor fab, provide preferential market access for domestically manufactured and designed products.
Mr Ajay Kumar, Joint Secretary, Department of Information Technology, said at the present rate, the country's electronics import bill may soon exceed that of oil. Hence, to encourage many domestic and global majors to set up manufacturing facilities in India, the Government proposes to implement some of the key recommendations of the special task force, set up by his Department, by 2012.
The key recommendations include setting up of Electronic Development Fund and creation of at least 200 electronic manufacturing clusters, and significantly scale up high-end human resource creation.