Economic Times: June, 2015
New Delhi: The government has approved 21 electronic clusters, telecom minister Ravi Shankar Prasad said on Monday.
"We have given in-principle approval to 21 electronic clusters and electronic manufacturing is priority area for us," Prasad said.
The minister was speaking at the occasion of the software lobby group Nasscom and the India Electronics and Semiconductor Association (IESA) signing a memorandum of understanding to jointly work to boost the government's Make in India and Digital India initiatives.
Through this partnership, the two industry groups are aiming for IT and electronic system design and manufacturing (ESDM) to contribute 25% to the country's GDP by 2025 that propel India into the world's top five economies.
Prasad said the government has so far received investment proposals worth Rs 65,000 crore while it has approved proposals worth Rs 9,000 crore under the modified special incentive package scheme or MSIPS programme, which aims to promote large-scale manufacturing in electronic system design and manufacturing. Under the MSIPS programme, a subsidy of 20% in capital expenditure is given to companies for investment in SEZs and 25% in non-SEZs.
In the past one year, telecom sector has emerged as the largest contributor to foreign direct investment in India, Prasad said, adding that the government has taken many initiatives to spur growth.
Manufacturing, he said, is crucial as it drives economic growth and revenue for the country. India's mobile penetration is expected to cross the one billion mark, but it is unfortunate that the country depends largely on imported devices, according to him.