Kapil Sibal, Minister for Communications and Information Technology held a meeting with Chief Ministers and Ministers of State Governments to enlist their support for promotion of investment in Electronics System Design and Manufacturing (ESDM).
It was outlined that the demand for electronics hardware in the country is growing exponentially and is projected to increase from USD 45 billion in 2009 to USD 400 billion by 2020. This provides a huge opportunity for India to become an ESDM hub to meet its domestic and global requirements.
Sibal emphasised on the importance of the role of the State Governments in creating favorable investment environment and facilitative availability of land, water, roads and training infrastructure. Appreciating the steps being taken by some of the state governments, he argued that other states should also consider developing policies for attracting the investment to their states.
J. Satyanarayana, Secretary, Department of Electronics and IT mentioned that the initiatives planned to promote the ESDM in the country include setting of semiconductor fabs, providing subsidy on capex through Modified Special Incentive Package Scheme (MSIPS) for investments across the value chain in ESDM, setting up of Electronic Manufacturing Clusters (EMC) and Preferential Market Access for domestically produced electronic goods in government procurement.
The States welcomed the initiative taken by Government of India and discussed their plans to support National Policy on Electronics and avail benefits of MSIPS and EMC scheme. The discussion involved Ministers from various states like Arunachal Pradesh; Gujarat; Haryana; Kerala along with several senior officials of the Government. The representatives of various industry associations including CEAMA; IESA; ICA; TEMA CMAI; AIMED; ACMA; ELCMA; CII MAIT ELCINA etc. also participated in the meeting.