Rs.100 bn fund – start a new electronics hardware company in India


Budding entrepreneurs who wants to establish their enterprise in the field of Electronics Hardware will have a nice chance to explore.
The Department of Information Technology (DIT) has proposed a Rs 100 billion electronic development fund, which aims to promote electronic hardware manufacturing in India.

A report from Business Line mentions that the announcement was made by Mr. Ajay Kumar, Joint Secretary, Ministry of Communications and IT, Department of Information Technology. It is worth mentioning here that the Draft National Policy On Electronics 2011 had the provision “to create an electronic development fund to promote innovations and IP and R&D, commercialisation of products, etc in ESDM, nano-electronics and IT sectors by providing appropriate funding/incentives to industry/ academic/R&D institutions”.

The proposed fund comes as a positive step in the direction of establishing an electronics manufacturing base in India. A new study conducted by ASSOCHAM and research firm Frost & Sullivan said that the Indian electronics market is expected to cross $400 billion by 2020. This growth in the Indian electronics market is sure to create more job avenues for the Indian engineering community. The report suggested that the increasing demand in the automotives and the consumer durables sector will be the main drive behind this enormous growth.

The Indian electronics industry is pegged at about $65 billion in 2010. The electronics market at the global level is estimated to reach $1.8 trillion. The study said that the mobile revolution, expanding middle class, growing emphasis on quality healthcare, increasing government expenditure on aerospace and defence, and growing significance of energy efficiency are the key trends influencing the growth in the Indian electronic market.

Mohit Bansal(23) is B.Tech in Electronics and Communication Engineering from Indian School of Mines, Dhanbad, India. He has interest in business and entrepreneurship and has published couple of research articles. He is also associated with various NGOs. He is with Techaloo when it was just in concept stage. The Techaloo site was not existing even then. Currently Mohit is working with Mu Sigma as a Business Analyst Profile.

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