Telecom Minister Ravi Shankar Prasad Announces Levels of Interest in ESDM Economy Expansion
This week, the Ravi Shankar Prasad, the Telecom Minister within the Indian Goverment has given an update on the progress and interest that has been surrounding the ESDM market, and in particular in electronics manufacturing. Speaking at an event the minister has said that the government has already received Rs. 65,000 crores of proposals for manufacturing electronics components within the short space of time that the initiative has been in place. He also confirmed the Governments seriousness and speed of action within this area, as 21 electronics manufacturing clusters have been given approval in principle already. Of the Rs. 65,000 crores of proposals, Rs. 9,000 crores have been approved for the next stage of action and development.
to further promote and develop the ESDM market, India will be hosting a week of related activities, promotion and awareness campaigns with the Digital India week, which is expected to be taking place in early to mid July 2015. The week itself will see the political and economic weight of the Prime Minister Narendra Modi behind it, as the figure head and focus point for this important series of events. The Indian Electronic System Design and Manufacturing (ESDM) market is expected to grow from $76 billion (roughly Rs. 4,88,100 crores) in 2013 to $94 billion (roughly Rs. 6,03,800 crores) in 2015 and touch $400 billion (Rs. 25,69,327 crores) by 2020.
We’ll report on further news on the upcoming Digital India once we have more details on this exciting event.
Our view: With such a massive amount of proposals received already, this shows the interest and potential business rewards from investment in the ESDM market is clearly attractive to businesses who also recognize the Indian governments resolve and commitment to this important area of the economy. The interesting point will be to see the detail of the agreed clusters, location and amounts as this will inevitably have a political effect as to the large sums of money involved, and it is certain that states and districts within states will be extremely keen to secure these funds for the betterment of their citizens. We also look forward to seeing the source of these funds, and reading the expected global electronics industry players that we are sure to see named as the companies behind these proposals, and also those companies that have failed to take advantage and could soon be left behind in this massive marketplace. We also hope, but are less expectant, to see some home grown Indian manufacturing companies within the names of the funding winners, as for the benefit of the economy, self generated funds have much more power and effect than those from external sources.