The electronics development fund is going to be setup to promote innovation, research and development (R&D), intellectual property (IP) and manufacturing in the electronics sector.
Ajay Kumar, Joint Secretary in the Information technology department, said at a Semiconductor (Semicon) Conference that the Central government is in the process of setting up an electronics development fund. “The electronics development fund is going to be setup to promote innovation, research and development (R&D), intellectual property (IP) and manufacturing in the electronics sector. This will help India become a major global producer of electronic goods and meet the rising domestic and export demand,” he said.
Referring to the niche the Indian software and business process outsourcing (BPO) services had created worldwide; Ajay Kumar said the time has come to demonstrate leadership position by building capabilities in IC (integrated circuit) design, IC fabrication and design and manufacturing of electronics products.
The demand for electronics goods is growing exponentially from diverse sectors such as telecom, IT, power, automobile and consumer electronics.
The department had also set up a peer review committee in January to study the recommendations of its task force on modifying the special incentive package scheme (SIPS) of 2007, which elicited a lukewarm response from the fledgling semiconductor industry.
The three-year-old package (SIPS) was unveiled to address the disability costs faced by the electronic manufacturing units due to higher costs of logistics, energy and transactions. As part of the scheme, the government had also proposed to provide support up to 20 percent for units under SEZ (Special Economic Zone) and 25 percent for units outside it, with threshold investments of Rs.2,500 crore for fab (fabrication) units and Rs.1,000 crore for the eco-system units.