ESSAY ON ELECTRONIC SYSTEM DESIGN & MANUFACTURING SECTOR IN INDIA
With the liberalisation and globalisation of the Indian economy, the small enterprises in India have unprecedented opportunities on the one hand, and face serious challenges, on the other. While access to global market has offered a host of business opportunities in the form of new target markets, possibilities to exploit technological advantage and the challenges in this process have flowed mainly from their scale of operation, technological obsolescence, inability to access institutional credit and intense competition in marketing.
India Semiconductor Association (ISA) has requested the Government of India (GOI) to favorably consider the following suggestions, which the ISA believes will greatly enhance the competitiveness of the Indian electronics and systems design industry. Some key features are captured here.
A. Semiconductor design: VLSI design, embedded software and reference board design
• Initiatives need to be undertaken to promote Innovation in R&D and product design. Creation of local IP should be encouraged.
• The Government should encourage incubating Indian start-ups. The government may set up a focused venture fund of about USD 50 million to provide seed and start-up capital for the new ventures to undertake R&D and product development.
• Extension of fiscal benefits under the STPI scheme till the year 2015 as a large number of companies have been unable to avail of the Special Economic Zones (SEZ) scheme due to a variety of factors beyond their control, including location issues.
• Extension of direct service tax exemption to STP and EOU Units akin to SEZ units.
B. High-tech manufacturing - Amendments to the Semiconductor Policy 2007
• The global economic slowdown has severely impacted the semiconductor industry leading to piling up of inventories and reduced capital expenditure.
It is, therefore, proposed that the deadline of...