The Industry body India Electronics and Semiconductor Association (IESA) said that investments up to Rs 2 lakh crore is expected in India in the electronics system design and manufacturing space within the next four years. IESA president M N Vidyashankar said that applications cleared at the Central and state level are worth about Rs 1.5 lakh crore over the last two-and-half years, under various programs in the Electronics System Design and Manufacturing (ESDM) space. Vidyashankar said IESA, the trade body representing the ESDM industry in India, would set up front offices in Taiwan (Taipei) by December and Japan (Fukoka) soon to attract investment. IESA is also mulling opening offices in the US and South Korea. Also Read - Facebook for Android will soon get dark mode and coronavirus tracking featureAlso Read - Scientists develop soft contact lens that can zoom with a blink
“As per industry estimates, up to Rs two lakh crore is expected to be invested in India in the ESDM sector in the next three to four years, making use of policy dispensations available at the Central and state levels,” Vidyashankar said in an interview. “People need not come to India to get info on the most preferred location and all policy related issues will be available in the proposed Front offices,” he further said, adding “We are also thinking of opening front offices in the Silicon Valley in the US and Seoul, South Korea.” On the impact of GST on ESDM industry, he said that GST would introduce an element of certainty with the rate becoming uniform all over India, adding, it’s a huge positive.
“The kind of mad rush that we are seeing with states engaged in one-upmanship to offer lower rates to attract investment will be a thing of the past. Now, comparative advantage and a level-playing field will come into force. Investors will go to states with natural/comparative advantages,” he said. Vidyashankar also said that a lot of things are happening on the ground which is conducive for the ESDM sector to grow. “Today, private sector is playing a complementary role in providing land and related infrastructure with plug and play environment. They are developing and selling/leasing land on terms as required by market and investors. Host of private business parks have come up in different states. Things are taking shape in the product development space,” he said.
He said automobile sector also saw a similar phase of growth. “They (automobile sector) took about 20 years to become what they are today. Starting from mid-1990s when Toyota came to India, and subsequently Honda, Scania and Volvo, we are today one of the best global players in the automobile sector. That’s what we are going to replicate in ESDM sector. Not in 20 years, but in less than half that time,” he said. ALSO READ: Electronics industry can meet Apple s wish list on purchase assurance: IESA