India’s electronics sector poised for a leap with $400B investment

Inaugurating the two-day Deftronics 2015 organised by India Electronics and Semiconductors Association (IESA) , Mr. R.S. Sharma, TRAI Chairman and also the Chief Guest at the event, said that investment in the electronics manufacturing sector has not achieved its potential yet, though the current demand in the sector is valued at USD 100 billion.

India’s electronics manufacturing sector is poised for a leap in the coming years, with investment worth over USD400 billion likely to come into the sector in the coming years, he further added.

The event is focused on Building Global Partnerships for ‘Make in India’ in the Aerospace, Defence and Internal Security sector, organized by the India Electronics and Semiconductor Association and this is the second edition of Deftronics, with the first held in Bengaluru last year.

Esteemed guests and officials who spoke at the event today highlighted the positive changes that have taken place in terms of policy and the steps taken by the present Indian government to provide a level playing field to the private players along with the public sector majors.

Kalyani Group Chairman and Managing Director Padma Bhushan Mr.Baba Kalyani, in his theme address called the moment in the sector’s history as an opportunity when the world economy is slowing and India isn’t much impacted.

He said, “The global economy is staring at a pronounced slowdown with the exception of India as the only bright spot. With Increased FDI inflow, favourable policy environment, the Indian GDP is expected grow upwards of 7 percent this year and it is an opportune time for Indian manufacturing in particular.”

DIPP Joint Secretary Mrs. Shubhra Singh, in her address, said, “Defence is an industry where the government is the primary spender and it sets the rules. Of the entire demand, only about 30 percent is manufactured in India and that too by the Public sector,”

“Defence sectors are dependent on DPSUs. The only way to rewrite this imbalance is to bring in the Private Sector. To promote this, we need to create domestic base first,” she added

In the last one year, defence sector has opened up systematically, raising FDI from 26 percent to 49 percent and this can go even more on a case-to-case basis.