Investments up to Rs 2 lakh crore is expected in India in the electronics system design and manufacturing space within the next four years, says industry body IESA.
IESA (India Electronics and Semiconductor Association) president M N Vidyashankar said applications cleared at the Central and state level are worth about Rs 1.5 lakh crore over the last two-and-half years, under various programmes in the ESDM (Electronics System Design and Manufacturing) space.
“As per industry estimates, up to Rs two lakh crore is expected to be invested in India in the ESDM sector in the next three to four years, making use of policy dispensations available at the Central and state levels,” he told PTI in an interview.
Vidyashankar said IESA, the trade body representing the ESDM industry in India, would set up front offices in Taiwan (Taipei) by December and Japan (Fukoka) soon to attract investment.
IESA is also mulling opening offices in the US and South Korea.
“People need not come to India to get info on the most preferred location and all policy related issues will be available in the proposed Front offices,” he said, adding “We are also thinking of opening front offices in the Silicon Valley in the US and Seoul, South Korea.”
On the impact of GST on ESDM industry, he said GST would introduce an element of certainty with the rate becoming same/uniform all over India, adding, it’s a huge positive.
“The kind of mad rush that we are seeing with states engaged in one-upmanship to offer lower rates to attract investment will be a thing of the past. Now, comparative advantage and a level-playing field will come into force. Investors will go to states with natural/comparative advantages,” he said.
He said automobile sector also saw a similar phase of growth.
“They (automobile sector) took about 20 years to become what they are today. Starting from mid-1990s when Toyota came to India, and subsequently Honda, Scania and Volvo, we are today one of the best global players in the automobile sector. That’s what we are going to replicate in ESDM sector. Not in 20 years, but in less than half that time,” he said