Elcina Bats For Slew Of Incentives To Give Fillip To Semicon Industry

Visakhapatnam: Electronic Industries Association of India (Elcina) has appealed to Union Finance Minister Nirmala Sitharaman to announce a slew of incentives to promote semiconductor manufacturing in India.

With the United States projecting semicon market to treble to reach $507.21 billion by 2031, at a CAGR of 7.04 per cent, Elcina sees a huge growth potential in India. Andhra Pradesh, which is a new player in semiconductor manufacturing, recently signed an MoU to set up India's largest pri-vate manufacturing facility at a cost of Rs14,000 crore in Kurnool district. Semicon is a material that has electrical conductivity between a conductor and an insulator.

Elcina projected that the demand for semicon in India will reach $100 billion by 2030 at a CAGR of 16 per cent and the government's patronage to bridge the demand supply gap in the electronic components. In multiple representations to the Centre, Elcina wanted to incentivise the investors to encourage building a strong component industry ecosystem for the ESDM sector.

Elcina’s Rajoo Goel told Bizz Buzz that they need sops like extension of 15 per cent concessional corporate income tax for manufacturing until March 31, 2029, establishing investment fund for SMEs, empowering electronic innovation and setting up product/component specific clusters for electronic manufacturing.

R&D incentivising support to create domestic champions in the ESDM sector, export promotion and exemption from the mandatory quality control orders for import of raw materials were part of the wish list. The association said the government should consider providing financial incentives or establish subsidised testing and certification facilities for MSMEs and a launch of a scheme to create surplus testing capacity.

Goel said they are for establishing a technology acquisition fund, a dedicated venture fund to support the advancement of high-value-added electronic manufacturing with specific focus on components and modules. He sought steps to extend interest equalisation schemes for both pre and post shipment rupee export credit till March 31, 2026 and increasing incentives to mitigate disabilities for exports under various schemes.