Electronics supply chain must give equal access to everybody: Chandrasekhar
The Minister of State for Electronics and Information Technology Rajeev Chandrasekhar on Monday said the electronics manufacturing industry needs to ensure transparency and equitable access to supply chains for all the players in India.
The remarks are significant as there have been reports that global electronic manufacturers are restricting the electronic components supply chains to a closed set of vendors. The local companies have complained that this trend has impacted the growth of India’s domestic manufacturing.
Chandrasekhar said the industry must maintain fairness, openness, and equity. “We expect a transparent distribution model, transparency in supply chains, and equitable access to these supply chains from all players in the electronics manufacturing ecosystem in India,” he said.
Chandrasekhar further said that wherever the government feels there is crowding out of Indian brands due to unfair trade practices, “We would like to intervene and make sure that those issues are resolved”.
Speaking at the launch of a report by ICRIER in collaboration with industry body ICEA on increasing domestic value addition, the minister said the government was committed to strengthening the country’s domestic manufacturing ecosystem to make it more resilient to supply chain disruptions. “The aim is to emerge as a reliable and trusted partner in global value chains,” he said.
Chandrasekhar said the electronics value chain has been undergoing deep tectonic irreversible changes post Covid-19, which has presented India an opportunity. Hence, the export target has been set at $120 billion by 2026.
He added, “The government is laser focused on achieving the target of $300 billion electronic production by 2026. Our aim is to emerge as a reliable and trusted partner in Global value chains.”
The government has offered incentives to help achieve this target, Chandrasekhar said, adding that it was clear that there would be a comprehensive support incentive package and policy framework for the component industry, one of which is semiconductors.
He added that companies from the United States of America, Taiwan, and Europe have shown interest in setting up semiconductor manufacturing units here.
The minister said he could not comment on how many Taiwanese companies would set up units here. “That you will know after the advisory committee finishes evaluating the proposals that you must have read in the media.”
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Comments are closed.