In order to boost the electronics and appliances sector and promote the industry, a master plan with a vision for the next 25 years is essential, according to a study by Ernst and Young and Assocham. The plan can be derived from the strategic options available to attract manufacturing facilities in India.
The report says the government can explore the possibility of creating a dedicated department for electronics and appliances to promote the domestic market and invest in research & development for attracting investments from global firms. The electronics and appliances industry can grow to $40 billion by 2012, with a CAGR of 11% for the period 2009-12.
The report also stated that Vietnam has a similar master plan, approved in May 2007, for the development of its electronic industry up to 2010, along with a vision that looks at the entire period 2020. Vietnam, through this master plan, aims to achieve a production turnover of $6 billion and an export turnover of $3.5 billion by 2010. It also plans to create 3 lakh jobs, and grow at an annual rate between 20%-30%. It took China a period of over two decades to become the largest exporters of electronics from being a net importer.
According to the report, India?s loss of Intel?s investment in 2006 to Vietnam turned out to be a marketing event for Vietnam. It is important to capitalise all such investment opportunities through a proactive approach. The leading global firms in the electronics and appliances industry should be approached with custom packages to help them set up facilities in India and the investment promotion agency should be well-equipped with resources for such an approach.
Assocham further added that a framework should be designed to promote the innovation of products for Indian consumers through public-private partnerships. India is in an advanced stage of signing a trade agreement with Asean countries. Therefore, steps should be taken to expedite the signing of other such trade agreements which promote trade.
