Electronic Manufacturing Industry Needs Major Push
Electronic Manufacturing Industry Needs major push to meet country’s needs and realize potential
Value Addition missing while we are exporting jobs ! ELCINA represents the Electronic Hardware Manufacturing sector, with a focus on electronic components, materials, assemblies as well as electronic manufacturing services which are the backbone of electronics. This sector has immense potential for value addition but has not been able to achieve its potential due to imports swamping the Indian market and investments in high value addition manufacturing eluding the industry. Expressing concern about the state of the industry, President of ELCINA, Mr. A G Rohira, comments that “ironically an industry which has great potential to generate large-scale employment opportunities and wealth for the nation is struggling to survive.” While the WTO Agreement has opened almost the entire electronic hardware sector to zero import duty, local manufacturing is faced with huge disabilities which makes indigenous manufacturing uncompetitive against Asian manufacturers such as China, Thailand, Malaysia etc. Mr.Rohira further adds that “the industry has to grapple with additional disability factor related costs such as higher interest rates, energy costs, cascading taxes and procedural delays making imports cheaper and an attractive proposition”. ELCINA wants to highlight that India offers one of the largest markets for Consumer Electronics and Information and Communication Technology (ICT) Products. Due to unfavourable conditions Manufacturers are simply importing SKD kits from China and other Asian countries which are assembled with screwdriver technology and sold locally. This neither adds value for us nor does it create employment. ELCINA feels that we are actually exporting jobs. Mr T Vasu, Hony Secretary ELCINA and member of its Policy Committee comments “If the components and parts which comprise these SKD kits could be manufactured locally it would create huge employment
Value Addition missing while we are exporting jobs ! ELCINA represents the Electronic Hardware Manufacturing sector, with a focus on electronic components, materials, assemblies as well as electronic manufacturing services which are the backbone of electronics. This sector has immense potential for value addition but has not been able to achieve its potential due to imports swamping the Indian market and investments in high value addition manufacturing eluding the industry. Expressing concern about the state of the industry, President of ELCINA, Mr. A G Rohira, comments that “ironically an industry which has great potential to generate large-scale employment opportunities and wealth for the nation is struggling to survive.” While the WTO Agreement has opened almost the entire electronic hardware sector to zero import duty, local manufacturing is faced with huge disabilities which makes indigenous manufacturing uncompetitive against Asian manufacturers such as China, Thailand, Malaysia etc. Mr.Rohira further adds that “the industry has to grapple with additional disability factor related costs such as higher interest rates, energy costs, cascading taxes and procedural delays making imports cheaper and an attractive proposition”. ELCINA wants to highlight that India offers one of the largest markets for Consumer Electronics and Information and Communication Technology (ICT) Products. Due to unfavourable conditions Manufacturers are simply importing SKD kits from China and other Asian countries which are assembled with screwdriver technology and sold locally. This neither adds value for us nor does it create employment. ELCINA feels that we are actually exporting jobs. Mr T Vasu, Hony Secretary ELCINA and member of its Policy Committee comments “If the components and parts which comprise these SKD kits could be manufactured locally it would create huge employment