Start-ups in India should look at high knowledge areas such as core sciences and space technology, said Minister of State for Commerce and Industries, Nirmala Sitharaman.
Addressing a gathering of around 300 delegates, which included members from the Indian Electronics and Semiconductor Association (IESA), Sitharaman asked the gathering to come up with ideas that can make a mark in manufacturing in areas such as Defence and agriculture.
“As the technology landscape is evolving, value in manufacturing can get a leg up from start-ups in this area,” she said. Part of Sitharaman’s concerns stems from the fact that around 80 per cent increasing reliance on imports that the country has to rely on for its electronics consumption needs. “ Electronics is the third biggest import after crude oil and gold,” said Sitharaman.
According to IESA, demand for electronics is estimated to reach $400 billion by 2020, with production only meeting 25 per cent of this capacity or $100 billion.
To meet this need, the Centre has set up 50 mobile manufacturing units, with a capacity to manufacture 9 million phones in a month, creating around 20,000 jobs. This has happened over the last 10 months, according to industry watchers.
Till date, India has 3,500 manufacturing units – making everything from mixers to mobiles, with an additional 1.2 lakh units supporting these bigger-size manufacturing units.
“That is a disconnect for a country of India’s size as well as needs and startups in knowledge intensive areas can bring in more value. This will create the right balance,” she said.
Source: Business Line
