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With India's electronics import bill set to become larger than its oil bill, the country needs to invest in an electronics manufacturing base to meet the huge demand for electronic gadgets, according to V. Raja, Managing Director, TE Connectivity India.
Raja said the implementation of existing policies, better freight infrastructure and indigenous manufacturing facilities could help curtail the runaway electronic import bill.
hardware solutions
TE Connectivity, which was earlier known as Tyco Electronics, is an NYSE-listed company with $13.3-billion annual revenue. It offers hardware solutions for sectors such as aerospace, defence, automotive, enterprise networks, telecom and consumer electronics.
Raja said India has to be self-sufficient to adequately plug the demand and supply gap. “For the electronic industry, a key ingredient is semiconductor or chips. Though a FAB (chip manufacturing) plant in India has been the subject of discussion for several years, there is nothing concrete on the ground,’’ he adds.
According to a report by Frost and Sullivan India - Electronics and Semiconductor Association, the demand for about 65 per cent of electronic products in India is met by imports. The report adds that these imports are likely to grow from $28 billion in 2011 to $42 billion in 2015, in the absence of intervention by the government.
The Budget announcement of zero import duty for setting up FAB / semiconductor/ wafer plants is bound to provide the right climate to attract investments, Raja said.
Supply chain network
He added that the National Electronics Manufacturing Policy, passed by the Cabinet in October 2012, showed hope. “The electronic policy talks about building a strong supply chain network that would enable local availability to go up from 20 per cent to 60 per cent. Freight costs and time to reach destination must not be a deterrent for manufacturers,’’ he said.
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