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Government looks to develop electronics component manufacturing base in India: Report

"From near assembly, we are right now moving in that direction seriously with policies to bringing sub-assemblies..., component manufacturing in India," Sawhney said at the Digital Governance Tech Summit.

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Published : Aug 27, 2019, 6:55 PM IST

New Delhi: The government is now working on policies to develop electronic components manufacturing base in the country and encourage exports, secretary in the Ministry of Electronics and IT Ajay Prakash Sawhney said on Tuesday.

"From near assembly, we are right now moving in that direction seriously with policies to bringing sub-assemblies..., component manufacturing in India," Sawhney said at the Digital Governance Tech Summit.

Once printed circuit board (PCB or the motherboard) assembly takes off in India, it will not only cater to the mobile phone segment but also other major electronic devices, he added.

The last five years, the MeiTY secretary said, witnessed a resurgence of manufacturing in India, starting with assembling of mobile phones.

"From around 6 crore mobile phones that were being assembled in 2014-15, we closed the last financial year with the assembly of 29 crore mobile phones within the country. Our entire consumption for the country is about 33-34 crore a year," Sawhney said.

With the spurt in electronics manufacturing, the government is increasingly trying to bring supply chain in the country, the secretary said.

The new technologies are of utmost importance for Digital India and delivery of e-governance services, Sawhney said.

On this occasion, Niti Ayog CEO Amitabh Kant said it is not possible to become a manufacturing nation without adopting modern technologies like artificial intelligence or without adopting machine learning.

"You know, there is one study that says in 2020, artificial intelligence will generate a USD 15.7 trillion economies which combines the output of both the US and China put together," Kant said.

Read More: GST shortfall may force RBI surplus use to meet fiscal deficit: Experts

New Delhi: The government is now working on policies to develop electronic components manufacturing base in the country and encourage exports, secretary in the Ministry of Electronics and IT Ajay Prakash Sawhney said on Tuesday.

"From near assembly, we are right now moving in that direction seriously with policies to bringing sub-assemblies..., component manufacturing in India," Sawhney said at the Digital Governance Tech Summit.

Once printed circuit board (PCB or the motherboard) assembly takes off in India, it will not only cater to the mobile phone segment but also other major electronic devices, he added.

The last five years, the MeiTY secretary said, witnessed a resurgence of manufacturing in India, starting with assembling of mobile phones.

"From around 6 crore mobile phones that were being assembled in 2014-15, we closed the last financial year with the assembly of 29 crore mobile phones within the country. Our entire consumption for the country is about 33-34 crore a year," Sawhney said.

With the spurt in electronics manufacturing, the government is increasingly trying to bring supply chain in the country, the secretary said.

The new technologies are of utmost importance for Digital India and delivery of e-governance services, Sawhney said.

On this occasion, Niti Ayog CEO Amitabh Kant said it is not possible to become a manufacturing nation without adopting modern technologies like artificial intelligence or without adopting machine learning.

"You know, there is one study that says in 2020, artificial intelligence will generate a USD 15.7 trillion economies which combines the output of both the US and China put together," Kant said.

Read More: GST shortfall may force RBI surplus use to meet fiscal deficit: Experts

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No quick turnaround in India's growth momentum likely: Report
          New Delhi, Aug 27 (PTI) India's economic growth momentum is expected to slip further as there is no quick fix solution for the structural issues that the economy is facing, says a report.
          According to D&B Economy Observer, the lackluster growth in the Index of Industrial Production (IIP) is expected to prevail as the manufacturing sector is facing multiple challenges which will take time to get resolved.
          D&B expects IIP to have remained subdued and grown by 2.5-3 per cent during July this year.
          The report noted that fiscal stimulus by government and the policy rate cuts by the Reserve Bank of India along with other initiatives are likely to offer some respite to corporates.
          However, a comprehensive/wide-ranging reform package will be required to address the various issues at the sectoral level, it noted.
          "The ongoing multiple issues in the global and domestic economy are expected to drag down India's growth further. There is no quick fix solution for the structural issues at the sectoral level and, therefore, it is highly unlikely that there will be quick turnaround of the growth momentum," said Arun Singh, Chief Economist Dun & Bradstreet India.
          Singh further said, the government's comprehensive measures and suitable interventions for different segments of the economy was much needed. Most importantly, it would help in reviving the overall sentiment immediately for the consumer and should support and encourage private investment.
          The government on Friday announced a raft of measures, including rollback of enhanced super-rich tax on foreign and domestic equity investors, exemption of startups from 'angel tax', a package to address distress in the auto sector and upfront infusion of Rs 70,000 crore to public sector banks, in efforts to boost economic growth from a five-year low.
          To bolster consumption, the government also said that banks have decided to cut interest rates, a move that would lead to lower monthly installments for home, auto and other loans.
          Singh noted that "without gainful employment opportunities, skewed distribution of income and dependence of majority of the population on the vagaries of the monsoon, it would not help much in pushing the consumption bandwagon".
          On the price front, the report said that lower economic activity along with subdued demand conditions and low commodity prices globally are likely to keep inflation benign.
          D&B expects the consumer price index (CPI) inflation to be lower than the previous month and remain in the range of 3.2-3.4 per cent and wholesale price index (WPI) inflation to be in the range of 1.1-1.3 per cent during August this year, respectively. PTI DRR
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