A Boost For Fabless Chip Design in India
There was a lot of excitement when the National Policy on Electronics was announced in 2012. However, in the six years that it has been in existence, it has not proven to be very effective in its aim of stemming the outflow of foreign exchange for electronics.
Back in 2012 it was widely opined that India’s foreign exchange bill for electronics would exceed its bill for oil by 2020. India’s electronics import bill has doubled in five years to $57 billion. However, thanks to the depreciating Rupee, the oil import bill is expected to touch $125 billion in this financial year (ending in March 2019) - so maybe the two are still a ways away from being neck-and-neck. But that's cold comfort. Statistics gleaned from several articles published in 2018 say that nearly 50% of the total amount of electronic products sold in India are imported. If you take the percentage of electronics components imported, it is even higher – up to 80%, according to online news reports. And India’s appetite for electronics products seems insatiable.
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