Uttranchal, Tamil Nadu and Gujarat provide additional incentives to attract companies in their states, says industry expert D Venkat Rao.
The electronics industry in the State shows a growth of 13 per cent, compared to the national growth rate of 18 per cent. The Rs6,000-crore industry employs 60,000 people from different education levels (matriculation pass outs to engineering graduates). However, there are many challenges to the industry in reaching its fullest potential in the State.
Availability of quality human resource is the major challenge for the electronics industry. The curriculum of ITI and polytechnic courses are more practical oriented compared to engineering courses. The Industrial Training Institutes (ITIs) impart practical knowledge and updated their curriculum based on latest technologies in the industry. There is also a need for setting up a curriculum for polytechnic practical training (internships) to make the student understand industrial environment, safety and ISO norms and regulations. Although, recent government policies encourage skill-development programmes, there is also a need to train teachers of engineering and other technical courses by IITians, who are far ahead in terms of technical and R&D knowledge, views D Venkat Rao, administrative officer, Electronic Industries Association of AP (ELIAP).
“The government initiatives are very slow in promoting support industries like mould manufacturers, LCD manufacturers and metals and alloys development. The peripheral industry is not treated as same as the electronic industry because the products of these industries can be used in multiple segments. There is a need for change in policies for the growth of peripheral industries and their importance in making quality electronic products,” he said.
“The concept of SEZs should not only be aimed at MNCs alone; it would be helpful to SMEs in the State too. Exports can only be increased by providing solutions to the present constraints of the industry like technology, finance and marketing. It is very important to understand that there is exponential growth in imports of electronic products, which even cross the petroleum imports. There is an immediate need to create facilities to enable the growth of the industry and attract MNCs to start operations in the country and promote brand India across the world,” said Rao.
“Almost 48 industries from the State are ready to set up new industries but do not have sufficient land. However, government is also considering a new policy, which is currently in the draft stage to spend Rs50 crore on each electronic hardware cluster. This will not only support R&D in the area, but also provide common facilities for small companies that could not afford them individually,” he said.
Talking about the new hardware policy by the AP government, he said the government should also keeping existing industries in mind to create conducive industrial environment rather than simply making policies attractive to new companies.
“Some states give capital equipment subsidies apart from VAT benefits,” Rao added.
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