India needs Rs. 44,000 Cr by 2030 to build domestic tech brands, recommends MeitY task force

NEW DELHI: The government needs to allocate Rs 44,000 crore between 2024 and 2030 to help domestic companies develop their products and build global brands, according to a recommendation by a task force set up by the Ministry of Electronics and Information Technology (Meity) in January.

The task force, aimed at transforming India’s electronics and semiconductor industries, is chaired by Ajay K Sood, the principal scientific adviser to the government. According to the reports, the task force recommends allocating Rs 15,000 crore for electronic products (systems), Rs 11,000 crore for semiconductor products, and Rs 18,000 crore for various incentives, including talent development, common infrastructure, logistics, and technology & IP acquisition.

The task force’s proposal prioritizes exclusive benefits for Indian companies, marking a shift from the PLI scheme that includes significant participation from global players. The task force defines an Indian company as one where a majority (over 51%) of the shares are controlled by Indian entities, the company headquarters are located within India, all global profits and financial benefits from product sales, technology transfer, IP licensing, and investments accrue to the Indian parent company.

Advocating for the extension of the PLI scheme for electronics manufacturing until 2030, the task force also recommends revising taxation policies to incentivize research, development, and testing activities. It proposes promoting Indian products through brand enhancement and subsidies for international trade participation.

To attract global companies keen on designing products in India, the task force suggests eliminating current barriers and formulating strategies for managing and leveraging standard essential patents (SEPs) to safeguard domestic interests. Additionally, the panel has identified 30 essential electronic products and 40 types of chips crucial for the country’s design and branding strategies.

The report forecasts the electronics market to reach $3 trillion by 2047, with exports contributing $1 trillion. The task force includes members such as Ajai Chowdhry, founder of HCL and chairman of EPIC Foundation; Sunil Vachani, MD of Dixon Technologies; Sanjay Nayak, former MD of Tejas; Puneet Agarwal, CEO of VVDN Technologies; Aman Gupta, founder of BOAT; Pankaj Mohindroo, chairman of ICEA; Sushil Pal, joint secretary at Meity; and representatives from the Department of Telecommunications, Department of Science & Technology, and Department for Promotion of Industry and Internal Trade.