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India's hardware makers align in united front

Posted: 17 Mar 2004 ?? ?Print Version ?Bookmark and Share

Keywords:electronic hardware? sensing? council of electronic hardware associations? software?

Sensing a turnaround in electronics manufacturing, this nation's four major electronic hardware associations will form a united front to lobby the government more effectively.

The Council of Electronic Hardware Associations (CEHA) will seek to make the Indian electronics/computer hardware manufacturing sector globally competitive. The four bodies that make up the CEHA - the Manufacturers Association for Information Technology, the Consumer Electronics and Television Manufacturers Association, the Telecom Equipment Manufacturers Association and the Electronic Component Industries Association - will retain their independent identities and their respective presidents will rotate the CEHA leadership annually.

In a joint statement, the amalgamated body said it will work to grow the country's hardware industry by encouraging domestic demand and helping the industry to tap its full potential in creating national wealth. CEHA will press the government to address the problems stemming from a lack of a value-added tax system and anomalies in customs and other duty tariffs, and to simplify procedures to cut costs and usher in labor law reforms.

One major job for CEHA will be to lobby the government to implement the draft computer hardware policy, which was prepared years ago but has been collecting dust ever since. A draft policy for software, on the other hand, was implemented almost in total. Unlike India's hardware manufacturers, software vendors here have been both united and aggressive in arguing their case.

While the software industry has been encouraged and helped at every turn, some observers complain, successive governments at the federal and regional levels have given India's anemic electronics hardware sector scant attention. Now, however, there is a growing belief that the fortunes of electronics manufacturing here are about to improve.

Still, representatives said, the industry remains neglected, the victim of an absence of proper policies. Unlike Japan and South Korea, for example, where the electronics manufacturing industry has been an engine of growth, or even China, where the industry represents 10 percent of the gross domestic product, India's electronics industry contributes just 0.6 percent to the country's economy, the joint statement said.

In recent months, the government has begun simplifying procedures and cutting duties on components and finished products being imported into India - all steps that are expected to spur healthy growth in domestic demand for electronic products and in turn spark more electronics manufacturing in the country. Sensing a turnaround in electronics manufacturing, this nation's four major electronic hardware associations will form a united front to lobby the government more effectively.

The Council of Electronic Hardware Associations (CEHA) will seek to make the Indian electronics/computer hardware manufacturing sector globally competitive. The four bodies that make up the CEHA - the Manufacturers Association for Information Technology, the Consumer Electronics and Television Manufacturers Association, the Telecom Equipment Manufacturers Association and the Electronic Component Industries Association - will retain their independent identities and their respective presidents will rotate the CEHA leadership annually.

In a joint statement, the amalgamated body said it will work to grow the country's hardware industry by encouraging domestic demand and helping the industry to tap its full potential in creating national wealth. CEHA will press the government to address the problems stemming from a lack of a value-added tax system and anomalies in customs and other duty tariffs, and to simplify procedures to cut costs and usher in labor law reforms.

One major job for CEHA will be to lobby the government to implement the draft computer hardware policy, which was prepared years ago but has been collecting dust ever since. A draft policy for software, on the other hand, was implemented almost in total. Unlike India's hardware manufacturers, software vendors here have been both united and aggressive in arguing their case.

While the software industry has been encouraged and helped at every turn, some observers complain, successive governments at the federal and regional levels have given India's anemic electronics hardware sector scant attention. Now, however, there is a growing belief that the fortunes of electronics manufacturing here are about to improve.

Still, representatives said, the industry remains neglected, the victim of an absence of proper policies. Unlike Japan and South Korea, for example, where the electronics manufacturing industry has been an engine of growth, or even China, where the industry represents 10 percent of the gross domestic product, India's electronics industry contributes just 0.6 percent to the country's economy, the joint statement said.

In recent months, the government has begun simplifying procedures and cutting duties on components and finished products being imported into India - all steps that are expected to spur healthy growth in domestic demand for electronic products and in turn spark more electronics manufacturing in the country.

- K.C. Krishnadas

EE Times





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