India eyes $400 bln in rev from electronics by 2020

[Galaxy]

India eyes $400 billion in revenue from electronics by 2020

Oct 3 (Reuters) - India has set an ambitious target of generating $400 billion in revenue from the electronic manufacturing sector by 2020, compared with just $20 billion in 2009, the government said in a draft policy released on Monday.

The proposed National Policy of Electronics, 2011 will involve an investment of $100 billion and aims to create 28 million jobs by 2020, the draft, released by the department of information technology, said.

The policy also proposes to set up over 200 electronic manufacturing clusters, and create a 10-year stable tax regime for the electronics systems and design manufacturing industry (ESDM).

The draft said the proposed policy will create linkages for long-term partnership between domestic ESDM industry and strategic sectors like defence, atomic energy and space.

India eyes $400 bln in rev from electronics by 2020 | Reuters

 

[tarunraju]

With not a shred of high-grade semiconductor manufacturing, no upstream industries (electricals, copper, silicon, plastic works), not sufficient power to support the industry, whoever said that India will make that much out of electronics manufacturing by 2020 must be tripping on acid.

Another possibility is USD hyper-inflation making the $400 billion realistic

 

[mattster]

With not a shred of high-grade semiconductor manufacturing, no upstream industries (electricals, copper, silicon, plastic works), not sufficient power to support the industry, whoever said that India will make that much out of electronics manufacturing by 2020 must be tripping on acid.

Another possibility is USD hyper-inflation making the $400 billion realistic

LOL.......You are on target. If there ever was strong case for some government funded industrial "navaratna-style" investment it would have in a Telecom or Semiconductor company.

Huawei which is becoming a major global power in Telecom switches, routers, etc was heavily funded by the Chinese military. India missed the boat.
They also missed the boat on establishing any commercial semiconductor enterprise despite the huge number of Indians professionals and NRIs involved in this industry.

Highly capital intensive industries need a strong government push. Even rich countries like Germany and France would never have been able to create companies like Airbus without the financial support and subsidizing of the Major EU countries.

Its not that they werent people who realized this. India's slow risk-averse conservative decision making process will always leave India trailing the field.

 

[thakur_ritesh]

really not hopeful of much here, the past and present doesnt give much reason of being hopeful.

kamal nath said india will be making 20kms of highways per day by july 2010, for a good one year he was all over the place hammer and tong, guess we are still struggling to do that figure, when he left the concerned ministry we were at a mere 12kms though wont discount 3 fold improvement from 4kms/day. with those kind of numbers no one would ever be retained in a private set up, kamal nath is still lurking around as a cabinet minister.

india in the current 5year plan was to add 80,000MWs worth of electricity production, the revised figures are down to in the 50,000MWs.

they targeted 500b usd worth of investment in the infra sector in the present 5year plan, revised figure is down to somewhere between 300-350b usd, telecom sector pretty much saved the day, if i may say so.

these are just some of the figures!

NAC has made this government as good as impotent on economic reforms, we have entered a stage where we dont even debate the 2[SUP]nd [/SUP]gen economic reforms any more, let alone any will to go that extra mile. UPA II is supposed to last till 2014, and god forbid if they were to return in the next elections as well, this will remain a dream even in 2029, 10 years from when UPA III would have relinquished the office, and here we are talking about having a high tech industrial set up and just yesterday narayan murth was showing his disappointment on the quality of students passing out of IITs these days, wonder what is happening at the other institutes.

policy making is one thing, implementation is just another!

 

[no smoking]

There is a question always concerns me: where are GOI gonna find money for these ambitious plan?
Private investors? Yes, they may be interested in building a factories, but not infrastructure. There is no way, any gov can rely on private market for those long-term projects.
Gov budget? I don't see indian gov has any sign to cut any other part of its budget.

 

[Armand2REP]

Chinese electronics manufacturing is only worth $141 billion so how does India plan to triple that when the market is already saturated? At least set attainable goals...

 

[thakur_ritesh]

There is a question always concerns me: where are GOI gonna find money for these ambitious plan?
Private investors? Yes, they may be interested in building a factories, but not infrastructure. There is no way, any gov can rely on private market for those long-term projects.
Gov budget? I don't see indian gov has any sign to cut any other part of its budget.

i really dont think funding will be too much of a problem. allocations in the budget get made based on the motives/needs/priorities.

infrastructure sector till a few years ago was to one of the most under funded sectors in india, today it is the most heavily funded through the budgetary allocations of the GoI, with different priorities the extent of funding also changes.

the indian budget this fiscal is of 270-280b usd (not sure which of the two figures is correct) and it is only expected to grow. they are here talking about an investment worth 100b usd spread over the next 10 years which would effectively mean getting in average 10b usd per year, though the initial allocations and investments will be low but will pick up with time and of this the GoI will fund a part of it, possibly the state governments too will play a part in its funding, they too would want a stake in something as high-end and then there will be the private set up stepping in.

getting 10b usd/year on an average, spread over next 10years which is expected to generate a revenue of 400b usd wont be too big a deal, that anyway is a very strong roi and seriously its not the funding thing that concerns me, its the implementation on part of the GoI, the land accusation, the red tape, and so on a so forth.

 

[Iamanidiot]

India does not even have a respectable semi-conductor lab in the first place where will it be able to get such a lab.Seems to be a feel good article