India To Make Rs 44,000 Crore Bet To Boost Electronic & Semiconductor Sector: Report

New Delhi, Jul 4 (KNN) India is considering a significant financial allocation to boost its electronic and semiconductor sector. A government task force is set to recommend dedicating Rs 44,000 crore to the sector between 2024 and 2030.

This proposal, if approved, aims to enhance India's capabilities in electronic and semiconductor products, according to a report by Business Standard.

The task force, established by the Ministry of Electronics and Information Technology (MeitY) and led by Ajay K Sood, the principal scientific advisor to the government, seeks to support domestic companies in product development and global brand establishment.

The proposed funding is divided into three main categories including Rs 15,000 crore for electronic products (systems), Rs 11,000 crore for semiconductor products, and Rs 18,000 crore for talent development, infrastructure, logistics, and technology acquisition.

Industry leaders such as Ajai Chowdhry, Founder, HCL and Chairman, EPIC Foundation, and Sunil Vachani, Managing Director, Dixon Technologies, are part of the task force formed in January.

The initiative is designed to exclusively benefit Indian companies, defined as those with at least 51 per cent Indian shareholding, headquartered in India, and with global profits accruing to the Indian parent company.

The task force also recommends extending the Production-Linked Incentive (PLI) scheme until 2030, improving R&D taxation policies, and promoting Indian products globally through subsidies and brand promotion efforts.

Additionally, the proposal identifies 30 essential electronic products and 40 types of chips crucial for India's needs. It projects the potential growth of the electronics market to USD 3 trillion by 2047, with exports targeting USD 1 trillion.

The recommendations are currently awaiting government approval. If implemented, this initiative could rival the scale of the existing PLI scheme for mobile devices and electronics.

The task force aims to simplify business operations for global firms designing products in India and proposes strategies to manage and leverage standard essential patents (SEPs) to safeguard domestic companies.

(KNN Bureau)