Encourage Electronic Components Manufacturing for "MAKE IN INDIA"

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We all know that in last 10 or 15 years , our neighbour country CHINA has expanded very fast & all set to become superpower in coming few years. Indian Market has been flooded with Chinese products. First Indian Products which disappeared from Market due to their entry, were battery operated toys. Then next victim were Domestic Electronic Component  Manufacturers due to price pressure put by Chinese parts. Another victim i have noticed in last few years was computer motherboard for which even connectors were coming from china. Another thing that badly hit Indian Market was many Reputed Chip makers have been shifted their Silicon Wafer Fab in China. Some of these are running Fabless business here but most of them are running into losses but exceptional cases are also there. There are some few domestic component makers who are able to withstand ups & downs in Industry. We can't even make full range of passive components i.e (chip capacitors, chip Inductors, chip resistors) at competitive prices at par with China, So thinking of IC's is a distant dream.

Hence, how can we think of Indigenization of Hardware design (board-level or chip-level) to cater the following domains:

1. Defense & Aerospace: This segment is mission-critical segment where single failure can lead compromise in national security & in worse cases catastrophic disaster. This segment requires MIL-STD-883 compliant electronic components. In some cases, Radiation Hardened Chips are also required to encounter Nuclear weapon attack. The cost of  these electronic components are exorbitantly high.      

2. Medical Equipment: This segment should also be mission-critical segment where single failure can lead death of injury to patient who under treatment or diagnosis.

3. Industrial : This is segment caters to Industrial Automation which requires again special graded components which can survive from  −40°C to 100°C temperature. 

4. Commercial: This is segment caters to Consumer Electronics (TV,DVD,Mobile phone etc) which requires commonly available low cost electronic component  which can survive from 0°C to 85°C temperature.

5. Automotive: Every automobile contains at-least minimum 25  computer chips & each computer chip requires 6 passive components to operate correctly in such harsh environment. This segment caters to automotive grade electronic components which can survive in extreme weather conditions from  0°C to 120°C temperature.    

We can take the case of microwave oven which requires microwave tube "MAGNETRON" to heat up the food which is also not manufactured in India.

Today , we all have LCD TV's in our homes, but the glass panel assembly required to manufacture the Display is also not manufactured in India. Only LAMPEX (http://lampex.com/ manufactures LCD display panels in India.

Each mobile phone requires separate RF IC's for GSM,Wifi,Bluetooth,NFC,GPS etc. All these RF IC's need to import from outside world. Only SANKYA LABS (http://www.saankhyalabs.com/ situated in Bangalore is capable to manufacture these RF IC's. Even batteries for these are imported from china.

Why i m writing this petition?

Ans.Most of these electronic components which i have mentioned above can be designed & manufacture in India at very competitive price with good quality control. Only few of them will be expensive to make here. if we keep importing electronic components from outside world, we will run out  our precious foreign exchange very soon which we earn from exports & also dollar value will keep appreciating in long run. By 2020, our import bill of electronic components will surpass oil import bill which can ruin our economy in long run. Henceforth, we need to become independent in this area.

What corrective steps government should take to change this situation?

Ans. Govt should reduce excise duty on manufacturing of electronic components less than 5%. But also should hike the custom duty import of those electronic components  which can be made here. On Chinese goods, govt should impose Anti-dumping duty to provide level playing field to Indian Counterparts. Further Chinese exporter enjoy much higher tax rebates & even export subsides than Indian Counterparts in their Special Economic Zones (SEZ) provided if they are capable to export 70% of their  production. Therefore, Government of India can also provide the same. It will take less time & single window clearance to get export  license in China as compared to India. So, GoI can ease the paper work required. If IPR against some high value machinery/equipment  is registered in china, then Chinese govt provides the incentives to manufacture the same in china & export 70% of total produce whereas in India this kind of incentive is totally absent. Any R&D house whether it is private or public sector unit should be given tax  rebate on the basis of  research patents filed by it during financial year.

Please! add your points, review it & provide corrections.my petition is still not complete. It requires the review from Supporters & Experienced Hardware Designers. 

JAI HIND.              



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