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“AP Government proposes High end R&D Park in Electronic Manufacturing in Hyderabad – in line with ITRI –Taiwan”

Hyderabad|India|August'2012: During the interaction with Sri.Kapil Sibbal Union IT Minister and with Dr.Kumar Mangalam Birla, Sri.Ponnala Lakhsmaiah Minister for IT & Communications Government of Andhra Pradesh –suggested that India is in dire need of high end Electronic R&D Park such as ITRI -Industrial Technology Research Institute, Taiwan.

Speaking at the sidelines of the First Convocation of BITS Pilani ( Hyderabad ), Sri.Ponnala Lakhsmaiah,Minister for IT, mentioned to Union Government that Today TAIWAN has an edge in Electronic Sector due to presence of the State of the Art Technology Research center such as ITRI.

ITRI acts as an epicentre of innovation in Electronic System Design and Manufacturing - ESDM area. located in Schinchu Science Park Taiwan it houses incubation centers for R&D activities in new and advance technology in electronic design and Electronic Hardware manufacturing space. It works at nurturing ideas from concept to product development and subsequently commercialization of Products. Hundreds of patents are registered every year (three patents a day) at ITRI Taiwan.

Providing a background on the state of Electronic Manufacture sector in India and Globally – Ponnala Lakshmaiah, IT Minister said that the Electronics, reported at USD 1.75 trillion, is the largest and fastest growing manufacturing industry in the world. It is expected to reach USD 2 trillion by 2014 and USD 2.4 trillion by 2020. Currently, the demand in the Indian market stands at USD 45 billion and is projected to grow to USD 125 billion by 2014 and USD 400 billion by 2020. Further, exports are expected to increase from the current USD 4 billion to USD 15 billion by 2014 and USD 80 billion by 2020. Domestic consumption is expected to grow exponentially at a CAGR of 22% for the period 2009–2020. This will be driven by a surge in income levels, the aspirational value of electronics goods, demand from a resurgent corporate sector and the government’s focus on e-governance.

Size of the global electronics industry vis-à-vis other major industries
4.40 times oil, petrol and minerals
2.75 times chemical and plastics
2.45 times food, beverages and tobacco
2.44 times transportation
2.20 times electricity, gas and water

Domestic production is at present less than 45% of domestic consumption. There is a huge gap in the demand and supply which will widen as the demand grows and domestic manufacturing continues to slacken. Significantly most of India’s electronics imports are from China and Indian government and Government of Andhra Pradesh may like to reckon this from a strategic perspective.

Ponnala Lakshmaiah,Minister IT mentioned that If India needs to achieve its dream of becoming a self sustained economy in consumer and strategic electronic sector instead of depending heavely on surmountable imports of Electronic Components from China and Taiwan we should immediately have an ITRI like institution in India supporting the Electronic Manufacturing sector.

Further Sri.Ponnala Lakshmaiah suggested that there is no better place then Hyderabad to have High End Technology R&D Center in Electronic Manufacturing sector. Hyderabad today has sound base of Electronic Design and Component manufacturing companies including base and strategic electronic. Sri.Ponnala Lakshmaiah added that - Out of the US$ 9 Billion IT Exports from Andhra Pradesh, US $ 1 Billion is contributed by Electronic Hardware Manufacturing sector. There is already an ESDM industry present and Hyderabad would be an ideal place to have a electronic sector specific R&D Institution. Understanding the importance of the electronic manufacturing sector Government of Andhra Pradesh recently announced the ESDM(Electronic Hardware) Policy which is first of its kind policy initiative in the country to attract and sustain the electronic industry.
Speaking to the Union IT Minister – Sri.Ponnala Lakshmaiah,IT Minister suggested that such institution can be established as a Joint initiative between the Union Government, the State Government and the Electronic Industry and Government of Andhra Pradesh is all set to take up this initiative with the support of Union IT Ministry. Sri.Ponnala Lakshmaiah also requested Dr.Kumar Mangalam Birla to support this initiative of the union and state Government as Birlas already have a major forey in Building institutions of Excellence. Government of Andhra Pradesh will send formal proposal to Government of India in this respect.


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