Electronics industry projected to cross Rs 10000 crore
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Modernisation plans coupled with an "extraordinary budget allocation" in the defence sector has fuelled growth in the country's electronics industry and it is projected to cross Rs 10000 crore during the current year, Minister of State for Defence M.M. Pallam Raju on Thursday said.
The Indian electronics industry has shown an upward trend during the 11th Plan, growing from Rs 5400 crore in 2007-2008 to Rs 7948 crore in 2011-12 and is projected to cross Rs 10000 crore during the current year,he said.
"Modernisation plans of the Indian Defence Forces coupled with an extraordinary budget allocation for the defence sector are fuelling this growth," he said.
It is estimated that the defence electronics purchases will be about Rs 600000 crore in the next ten years.
"This offers an immense growth opportunity for domestic electronics manufacturers catering to the defence segment and the government expects the local industry to gear up and meet this challenge," Raju said.
Defence electronics sector is also likely to see a high growth during the 12th Plan. "While the Navy and IAF are likely to contribute about 15 per cent each, bulk of the demand (about 70 per cent) will come from the Army," he said.
Provisions have been incorporated in Defence procurement procedures (DPP) to encourage participation of Indian industries in defence production, he said, addressing the Third Strategic Electronic Summit 2012 for Defence and Aerospace here.
The Defence Production Policy would envisage a greater role for the private industry and SMEs in building a robust indigenous defence industrial base in the country,Raju said.
Government has been facilitating growth of strategic electronics sector by promoting participation of private industry and FDI in defence sector to protect country's strategic assets in sea, air and land, he said.
In the current geo-political situation, it was important for the country to have self-reliance in the electronics sector to protect national interest by integrating country's strategic assets in sea, air and land, he added.
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