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Cadence On National Policy On Electronics - 2012
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Friday, July 13, 2012:
“The cabinet’s approval of the Modified Special Incentive Package Scheme (MSIPS) for the electronics industry is a welcome initiative. It is a key step in addressing the huge gap – estimated at US$300 billion – between locally manufactured electronics and the consumer demand for electronics that we expect to see by 2020.
It is commendable that the government has announced approvals for incentives up to Rs. 10,000 crores during the XII Plan. Also, the provision for reimbursement of central taxes and duties for setting up local fabs in future is a step in the right direction. It is also encouraging to note that a wide range of verticals can benefit from MSIPS, and also that MSIPS will provide incentives for relocation of units from abroad.
This announcement follows two other significant announcements related to supporting the local ESDM ecosystem – one in July 2012 on the setting up of electronics manufacturing clusters by the Government and the other in February 2012 on preferential market access to Indian electronics hardware companies. The only missing piece now is the setting up of an Electronics Development Fund, which will provide the impetus for the ESDM ecosystem to really take off.
Overall, the MSIPS is a welcome step in encouraging the local electronic system design and manufacturing (ESDM) ecosystem in India. “
--Jaswind
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er S Ahuja, Corporate Vice President and MD, Cadence Design Systems ; President, VLSI Society of India and former Chairman, ISA,
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