"India's electronic sector has been undergoing tremendous transformation over the past few years. 2014 was a milestone year in terms of setting the right policy environment. 2015-16 will be key in translating those policy benefits into real action and bringing large scale investments," IESA's new Chairman Vinay Shenoy told media.
IESA is represents the Indian electronic system design and manufacturing industry. It has closely worked with government on framing policies for domestic electronics manufacturing ecosystem.
Shenoy, who is the Vice President and Managing Director of Infineon Technologies India, said the retrospective tax issue had become serious issue for foreign investors, making them wary of India.

"Government has marketed 'Make in India' campaign very well. Multi-national companies are lot more positive now but they are cautious. Retrospective tax cases that we have seen in last five years is making them wary of India," Shenoy said.

When asked about India still awaiting to see first semiconductor or electronic chip manufacturing plant, Shenoy said that government has announced policies to attract investment, companies are working on to finalise projects but before that policy execution has to happen which is largely
dependent on state governments.

"Semiconductor plant require over USD 4 billion investment. These plants operate on local-to-global basis. The plant has to work round the clock which requires continuous supply of clean water, power. These all things need to be simultaneously put in place before investments start hitting ground," Shenoy said.
The government approved two electronic chip manufacturing plants in February 2014 at a total cost of Rs 63,410 crore. One plant will be set up by Jaiprakash Associates Ltd, with IBM and Tower Semiconductor of Israel as partners. According government sources, both the consortium are still working on their financial arrangements.
Shenoy said he will work with state governments to help attract electronics manufacturers and focus on creating right skills required for industry as manufacturing grows.
"Some states have come out with excellent policies and are seeing good traction. Other states need to take initiatives. We have tied up with global bodies and as industry we have to work to see that large electronics manufacturing companies start setting up their base in India," said Ashok Chandak, who stepped down as IESA chairman.

He will continue as advisor to IESA. The industry body elected Rambus Chip Technologies Managing Director K Krishnamoorthy as Vice Chairman and Avago Technologies Managing Director Santhanakrishnan Raman will serve as the new Treasurer.

Latest News  from Business News Desk