A variety of concerned stakeholders comprising of esteemed
academicians, former diplomats, scientists, lawyers and public health
organisations have written a sharp open letter to Narendra Modi’s government on
the decision to review India’s position on IP laws ahead of his visit to the
United States, strongly cautioning against coercion from the foreign state to
align India’s IP laws with the interests of transnational corporations. While
the government was formulating the first steps that could lead to a fulfillment
of the grand vision of “Make in India” campaign, we should look towards the new
opportunities that the government’s various new programmes which are being
launched, such as the Digital India Programme.
The Growth in
Demand-Supply Equation
Indian electronics hardware production constitutes around
1.31% of the global production. At the current rate of growth, the domestic
production can cater to a demand of $104 billion in 2020 and the remaining
would have to be met by imports. Reports from Department of Electronics
& Information Technology estimates that the demand for electronics to
reach $400 billion by 2020, and at that point of time our electronics import
bill will overtake the petroleum import bill. Now that the government is
planning to build several Smart Cities in the country, and there is the massive
Digital India programme, it is possible that that the demand for electronics
goods could surpass the estimated $400 billion by 2020.
The success of this initiative will lead to a dramatic
change in the way the products manufactured in India are perceived. The Digital
India programme is not about big expenditure by the government, it involves new
ideas and restructured schemes.
Recognize and
Resolve.
The market prefers to buy cheap Chinese products as compared
to products made in India. That is why we are now exploring international
markets like Dubai and Singapore for export of made in India products, he adds.
It is the higher cost of production that is the root cause of the lack of
investments in electronics manufacturing in India despite the fact that we are
the world’s largest consumer of electronics products.
The government should not only think of creating an
ecosystem to “make in India”, it should also enable the companies to “sell in
India”. Both, creating and selling, are equally important for driving the
ecosystem.
Innovative Avenues
for development
Telecommunication - The telecom is
a crucial sector in the entire digitization plan. Companies are looking at the
4G networks with interest, as they feel that 4G will open several new
opportunities for domestic players.
Set top boxes, wearable electronics, medical electronics,
telecom equipment, infrastructure (for bridge monitoring systems, disaster
warning systems), smart energy metering systems and infrastructure for “Smart
Cities”, are the key segments and areas of growth where the new investors can
lay down their money.
Defense - Up to 40% FDI
is now permitted in the defense sector, and about 60% of defense products
consist of electronics. The electronics manufacturing industries sees light in
the area defense. It is believed that India might soon have global electronics
giants participating in the creation of defense related products.
The reason why many companies
are hesitant to manufacture in India is due to lack of stringent IPR
(Intellectual Property Rights) regulation in the country which is why our
government needs to clear the basic operational roadblocks.
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