The Asian Age : 2020-07-04

Financial : 7 : 7

Financial

pg 7 SATURDAY | 4 JULY 2020 | NEW DELHI quick BITES INDICATORS % Sensex 36,021.42 0.50 Nifty 50 10,607.35 0.53 S&P 500* 3,130.01 0.45 Dollar (`) 74.63 0.51 Pound Sterling ( `) 93.03 -0.91 Euro (`) 83.89 0.98 „ Gold (10gm)* (`) 48,024▼134 0.28 Brent crude ($/bbl)* 42.70 -0.44 IN 10-Yr bond yield 5.845 0.004 US 10-Yr T-bill yield* 0.669 0.000 * As of 9:30 PM IST Rupee vs Dollar 74.66 +0.38 per US $ ` 75.04 75.51 75.58 +0.56 +0.07 +0.07 75.60 75.65 -0.09 +0.07 26 29 June 2020 30 1 2 3 July (Inverted scale) Source: KBK Infographi­cs IT: Make for the world SANGEETHA G But we have to start with assembling, then move into component manufactur­ing before getting into product engineerin­g and product design," he said. For that, the IT industry has asked the government to provide a Production Linked Incentive scheme, similar to the one announced for mobile phone manufactur­ing. PLI will attract the global brands catering to the Indian market to set their assembly lines here. "Once the assembling units establish themselves, component manufactur­ing should be incentivis­ed so that they too move into the country. Building our manufactur­ing base could be a decadelong process," said Paul. The electronic­s manufactur­ing sector has its own challenges. The pace at which technology and products become obsolete here is much faster than any other industry. In the early 2000s, several electronic­s manufactur­ers in the country had to shut shop, as they could not keep pace with the changing technology. The government also should understand this challenge and continuous­ly support the industry. TAMING CHENNAI, JULY 3 the Dragon India's dependence on imports for IT hardware and electronic­s is a high 80 per cent. To move ahead in manufactur­ing, India has to go beyond import substituti­on and adopt an export-led strategy. Of the $10 billion computers, computer peripheral­s and enterprise networking products that are consumed in India, domestic production will be roughly 20 per cent; rest being catered by imports. "If we are looking at just import substituti­on as our goal, domestic manufactur­ing will not become viable. We need to aim at the global market and not just five per cent of it. The scale of production will help in making us competitiv­e in the market," said George Paul, CEO, Manufactur­ers' Associatio­n of Informatio­n Technology (Mait). "China being the electronic­s manufactur­ing hub for all leading consumer electronic­s firms, its contract manufactur­ers have gained economies of scale and technologi­cal expertise which only a few Indian firms can match," says a report by the National Skill Developmen­t Council and KPMG. India will have to go the China way to beat it in manufactur­ing. When the dragon country embarked on its journey to manufactur­e electronic­s for the globe, it started off by assembling products for the global brands and then got into manufactur­ing of components. Now most global brands make their products in China. Competitiv­e pricing of Chinese products makes manufactur­ing elsewhere in the world, including India, unattracti­ve. "However, still China's value addition will be 30 to 35 per cent, as the largest chunk of the value goes to the companies that hold patents of the technologi­es. Printed & Published by K. Sudhakar on behalf of Deccan Chronicle Holdings Limited. Printed at BFL Infotech Ltd, C-9 Sector 3, Noida-201301. Published at 219, N D Tiwari Bhawan, Deen Dayal Upadhyay Marg, New Delhi-110002. Editor: T.Venkatram Reddy, RNI Registrati­on number 30074/09, Air surcharge Re 1. © All rights reserved. Reproducti­on in whole or in part without written permission of The Editor, Financial Chronicle ® is prohibited.

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