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Central Government starts work on developing Semiconductor industries in India, to counter China

In a significant development, the Indian government has started work on developing a “genuine” single window clearance mechanism and mapping the entire land bank available for the industry and industrial development, Commerce and Industry Minister Piyush Goyal said on Tuesday.

The government is all set to build semiconductor industries in India to support PM Modi’s call for a “self-reliant” India or “Atma Nirbhar” Bharat. The government is thinking of promoting the manufacturing of electronic products like LED televisions and CCTVs in the country to counter China. This move is to make India self-reliant in the electronics sector.

In addition to this, the ministry is making a framework to capture IT services exports data. Goyal said that he has ordered officers to look at some framework by which the ministry can capture data of IT services exports.

“We are working in DPIIT (Department for Promotion of Industry and Internal Trade) to create the framework of a genuine single window where you do not open doors behind that single window. We are also working on mapping the entire land bank available for industry and industrial development,” he said while addressing industry representatives of electronics and software exports.

The minister stated that sufficient land is available and “we can make sure that it is available at competitive prices, we can even talk to states”.

He added that states can be consulted on issues like affordable power and water supply if the electronics industry wants to set up an entire ecosystem in a state.

“Talk to DPIIT, pick up an area of your choice, where the entire ecosystem can be created and supported and we are willing to go that extra mile whatever it takes to create such a cluster of industry and it should be world-class,” he said.

Regarding the demand of export incentives under MEIS (merchandise exports from India scheme), he said the ministry is working on Remission of Duties or Taxes on Export Product (RoDTEP), “so I do not know whether MEIS can really sustain or continue beyond December 2020 or when RoDTEP come to your industry”.

He said that no industry can sustain in the long run on “these clutches” and industries, which are free of government intervention, are flourishing.

IT, BPO and software industries in India are largely successful because the government does not intervene and “to my mind that is what we should gradually move and push towards in the electronics sector also”.

He further said that the government is unable to provide endless resources to any and every sector, “so we will have to gradually move towards more and more self-sustainable projects”.

He asked the industry to work on creating some clusters where the whole ecosystem can be created with all necessary testing labs, common services, getting plug and play infrastructure to units and ensuring online clearances”.

“We really want to see (semiconductor) FAB (plant) coming up quickly. I would urge you to apply your mind and tell us what the government needs to do for that,” he said adding”We can even think of setting up a plant near a power plant,” he added.

Written by Dharam Sikarwar

Writer, historian, and activist Dharam Sikarwar is a very active author The Youth. He writes on national and international issues, environment, politics. He is an avid book reader as well.

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