“The momentum of investment in India is increasing steadily”

Dr. Ajay Kumarjoint secretary, DeitY

Dr. Ajay Kumar
joint secretary, DeitY

March 2013 The Budget Speech of Hon’ble Finance Minister has provided several announcements which would support manufacturing in the electronics sector.

Apart from major announcement regarding semiconductor wafer fab, there is additional duty on Set Top Boxes which would make it competitive for both domestic players as well as global players to consider manufacturing in India.

Our compliments to the Hon’ble Finance Minister for having recognized the need for semiconductor wafer fab in the country. The Budget 2013-14 has more for electronics industry than previous few budgets. But also some issues remain.

Issues like CenVAT, inverted tax structure, need for treating domestic production of ITA goods at par with exports are some of the other requirements which the electronics industry has been raising from time to time. We are hopeful that these would also get their due consideration as the momentum of investment will increase in the sector.

The momentum of investment is increasing steadily. We have thus far received 7 investment proposals over last three months for manufacturing in the Electronics sector.

All these proposals include necessary financial closure and are therefore serious proposals of investment. These relate to various sectors including consumer electronics, automotive electronics, EMS. LED, etc.

Similarly, proposals for over Rs 2000 Crores have been received for setting up Electronic Manufacturing Clusters. These include Clusters proposed to be set up by Governments as well as by private developers.

From our next interaction, I will provide a monthly update of the proposals received under Modified SIPS and EMC scheme for the information of the reader. And hopefully, there would be good information to report.

Dr. Ajay Kumar is also the chief editor of DietY’s electronic e-newsletter from where this article has been extracted.

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