By KVVV Charya
In a motivating address, the country’s Secretary for Electronics and Information Technology ministry (MeitY) points that India needs to go deep into value chine in the semiconductor sector. Revealing that the Central government has already committed Rs 70,000 crore, out of Rs 76,000 crore incentive programme aimed at development of sustainable semiconductor and display ecosystem.
Mr S Krishnan, the MeitY secretary further said that the country’s total electronic exports are pegged at $110 billion, of which about 18 to 20 per cent are out of value addition by way of assembling and labour. Though this value addition is significant, but this is coming out of assembling areas since we can provide low cost labour. He felt that this may even move to other countries if we delay in expanding into primary chip components manufacturing.
He pointed out that the India is in advantageous position as for as skilled workforce is concerned, that we have about 20 to 25 per cent global skilled workers in the country. And we must take advantage of this factor.
The country is providing most attractive incentive system. Besides 50 per cent incentives from the Union government, even some of the states also offering top up incentives which may take the total incentives to the tune of 75 per cent of the total cost of the unit.
India has nearly about 300 vendors who will supply equipment and other chemicals and these numbers need to expand to realize the dream to become global hub for chip components. And the government is all set to support the ecosystem through its policies.
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