Electronic manufacturing in the country has been far behind the demand generated for these products which are resulting in increasing import bill and loss of employment opportunity in the country.
The reasons can be following -
* Indian companies are stuck in low end technology with little focus on high end technology.
* Poor tax regime in the country and rigid labour laws.
*Lack of innovation regime in the country as compared to contemporary countries.
* Low environment for promoting electronic manufacturing business- issue with respect to clearances of license, land accusations, absence of single window clearances for all approvals.
* Fund crunches for manufacturing company as compared to capital intensive industries.
*Lack of skilled labor in the country.
* Competition from china, Korea, Thailand which provide low cost and better products as compared to indian products.
* Inverted duty structure in manufacturing also affects productions.
* R&D in electronic manufacturing is lacking in indian industries.
Measure needs to he adopted-
* Focus should be on capturing foreign market along with domestic markets. All the hurdles which stops the trans boundary movement of goods should be reduced.
*Skilling of labour - national skill development program should be catered to impart requsit skill in electornic manufacturing.
* Ease labour laws and ensure certainity in tax regime.
* Amend industrial policy to financially support electronic manufacturing industry.
* Improve ease of doing business environment - single window clearance, fast dispute settlement, removal of land acqusition problems etc.
*End inverted duty structure.
* Setting up of SEZ for electronic manufacturing industries also incentive in the form of tax holidays to encouraged productions can be provided.
* Ease FDI regulations in electornic manufacturing - this will ensure flow of funds as well as technology.
* Govt can collaborate with foreign party for providing necessary r&d in electornic manufacturing sector to the indian companies.
CONCLUSION;Govt has taken effort like M-Sips, electronic manufacturing cluster etc are steps in right direction. This sector provide a good opportunity for creating employment in the country. Govt can come up a electronic manufacturing policy which touches every aspect of problem factroed by electronic manufacturing industry and provide necessary support for increasing productions in the country.
