Tuesday, January 12, 2016

India's #electronics goods import bill putting strain on #foreign exchange : R V Deshpande, Min. #Karnataka

Indian Electronic System and Design Manufacturing (ESDM) is estimated around $94.2 billion, which has grown at a CAGR of 9.68 per cent since 2011. Despite this growth, the ‘manufacturing’ of electronic goods has not been a feature of Indian industry.India imports around 65 per cent of the total demand for electronics which accounts for its second largest import after crude oil. The import translates to Rs.50,000 crore of lost opportunity cost owing to limited manufacturing in India.'The country should seriously look at the growth of domestic electronics industry as burgeoning imports are putting strain on foreign exchange' said Karnataka Industries Minister R V Deshpande at the inauguration of India Electronics Week 2016 at the Bangalore International Exhibition Centre( BIEC) yesterday."Today, oil prices have collapsed and gold prices have almost collapsed and hence there is no strain on foreign exchange. But there is so much of imports happening in the field of electronics," Karnataka Industries Minister R V Deshpande said.

"This should not happen, instead exports should happen with the kind of resources we boast of," he said addressing the gathering at 'India Electronics Week 2016' here.

He said though Karnataka is recognised as the hub of innovation and technology development,the electronics industry in the state has not caught on speed as IT and BT did, despite having more than eight per cent contribution towards growth.

"We are recognised as Silicon valley, but as far as the electronic industry goes, though our contribution is more than eight per cent, I am surprised why this industry could not take the speed. Therefore there is a tremendous scope," he said.

Deshpande urged the electronics players to not only invest in Bengaluru, but also in Tier II and Tier III cities like Mysuru, Mengaluru, Hubli-Dharwad and Belagavi.