The government's focus now is to increase domestic power production and new plans are in the works to do so, a government official said on Dec 11. Speaking at the CII Electronic Summit, Electronics and IT Minister S Krishnan (Meity) said that 99 percent of the country's mobile phone market is in the domestic sector, and the level of future growth, companies need to improve their competitiveness and export. And improve added value.
"If our competitiveness needs to keep getting better, then the challenge really is to not just rely on about 10 to 15 percent of the value addition to assembly units in the country but to look at what else we can do, how can we move up in the value chain?" Krishnan said.
He said no one country will ever own the entire value chain, and it will only be a portion of the value chain that India needs to target.
"Probably in India's case, the best case will probably be China, which has about 40 to 45 percent of the entire value chain, which is manufactured in China. We could possibly be thinking of about somewhere in the same region of 35 to 40 percent of the entire value chain," Krishnan said.
He also said that the government is working on a second version of the incentive scheme for the electronics component -- Scheme for the Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS).
"Earlier MSIPS (modified special incentive package scheme) was launched. Now, SPECS 1.0 has been implemented for components. We are working on the next SPECS... That will be done after taking issues of the electronics industry into consideration," Krishnan said.