The Electronics System Design and Manufacturing (ESDM) industry has urged the Centre to establish a National Electronics Mission to help synchronise the functioning of the industry which had the potential to save the country import bills which would be bigger than oil imports in the near future.

A sub-committee of the task force set up by Union Department of IT, comprising industry leaders, have submitted a report recommending setting up of the Mission which could work as a nodal agency to help the industry.

Briefing reporters about the recommendations, India Semiconductor Association (ISA) Chairman B V Naidu, who is also a member in the sub-committee, said currently the demand for electronic products in India stood at 45 billion dollars out of which 80 per cent was imported.

‘Domestic Consumption is expected to grow exponentially at 22 per cent CAGR during 2009-20. If given due support, the Indian electronic industry, can help the country save the import bill of electronics goods which is expected to surpass the oil bill by the year 2014,’ he said.

He said the electronic market was expected to grow to 125 billion dollars by 2014 and touch 400 billion dollars by 2020. Supply was not keeping pace with demand. This was the reason for the ever increasing imports from countries like China and Taiwan.

Local manufacturers were not able to match the prices of imported finished goods as they did not enjoy volume advantage. Though Indian companies have developed world class products due to less volume they have not been able to stand up to the competition of cheap imports, he said.

UNI