Statistics and Systematic Data Collection

It is vital to build a credible and consistent source of information on Electronic Components, Raw Materials, and Equipment Industry as well as Market, with the following objectives:

 Identifying Opportunities for manufacturing where India has an advantage or existing eco-system

 Status of investments and investment needed to meet the targets to ensure strategic strength and independence for the country

 Country-gap scenario – equipment / components not manufactured or not manufactured to desired specifications by indigenous manufacturers; quantity wise gap

 Profiling of the potential users, especially in case of investors in the components and EMS sectors and Competitors for enabling an informed investment decision

 The data would to an extent help in sourcing of inputs from local sources and thus higher added value

 Cost advantages and disadvantages for high value add manufacturing and reasons for lack of investments

 Determine and provide direction to R&D activity to make the nation ready for future challenges and opportunities

This would require regular mapping of the electronics Value Chain as well as map the End-User Electronics Equipment Market. To arrive at such a credible source of information, the following steps need to be taken and information collected:

 Current Status including production and demand for raw materials, components, sub-assemblies (where applicable) and finished products/ equipment

 Disaggregated Export and Import data

 Projected demand – domestic as well as for accessible export markets

 Identify ‘star’ products and components which have potential for rapid growth and obtain global statistics on the same. This will enable assessment of their future potential and relevance for Indian market and manufacturers

Reasonably accurate data needs to be collected about the industry as detailed above, to derive useful information about the industry. This may be done by one or more of the following methods / sources:

o Industry Associations can be called upon to conduct annual studies for collection of data from industry and by direct sampling in the market. A Budget needs to be provided by Department of Information Technology for this exercise and the format in which data has to be collected and presented is to be pre-defined so that each association follows the same format for their respective segments o This data can then be consolidated with relative ease and verified statistically

and/or by Input-Output norms etc so that it is validated

o The above exercise needs to be carried on continuously for at least 5 years. This will enable the researcher to reach a fair degree of accuracy and annual updates will become easier and will cost less. A detailed survey for data can then be carried out say once in every three years with quick updates for the next 2 years o Once the Central Excise e-filing system is in place throughout the country, data

on domestic production can be obtained and consolidated HS Code-wise.

o Data on import - export is readily available from the DGFT website and can be downloaded fairly easily. Once the Associations are conducting the exercise of industry and market survey annually, they can use this resource and carry out an

analysis of export and import trends as well as global movement of goods/ main exporting and importing countries etc.

The Production and Export Targets for Electronics Hardware for the Twelfth Five Year Plan (2017-2017) under High Manufacturing Growth Scenario (Optimistic) and Natural Manufacturing Growth Scenario are given at Annexure-3.

The proposed Outlay for the various Schemes / Programmes for promotion of ESDM Sector for the Twelfth Five Year Plan is estimated at Rs.33,375 crore, are detailed at

Annexure-4. The sectoral overview of Electronics Hardware Sector is given at Annexure-5.

7.

Institutional Framework

The execution of the strategy would involve announcing setting up of the National Electronics Mission (NEM) for achieving the targeted growth of the sector.

The vision of development of ESDM should be achieved through two important enhancements in the governance processes i.e. greater inclusion and greater empowerment.

Inclusion

Create a governance mechanism which is inclusive of industry in guiding the high level strategy and policy making. At the implementation level it should provide inclusion of relevant Government Ministries and Departments whose functioning is directly or indirectly connected to the achieving the Mission objectives.

Empowerment

The Mission should act as a single window for all decisions relating to the electronics system design and manufacturing sector. Greater powers should be provided for speedier and more effective decision-making.

The Mission should work closely with State Governments and the Local Self Governments so that they provide greater thrust and priority to the sector. The State and the Local Self Governments should be encouraged to provide supporting quality infrastructure, viz., land, power, water and financial incentives for the sector. Some State Governments have already announced attractive incentives for electronics hardware industry. The Mission should work with all States to have policies conducive to the development of the industry. Most importantly, they may nominate a State nodal Agency for single window clearances and inter-departmental coordination, so as to reduce red tape and cut transaction costs.

NEM must support international and national marketing of investment opportunities in ESDM. The Mission should work closely with the Department of Commerce, Government of India and industry associations in matters relating to India’s international commitments relating to the World Trade Organization and other bilateral and multilateral Free or Preferential Trade Agreements.