The Indian Electronics Industry : Current Status, Perspectives and Policy Options

Prior to the 1980s, India's electronics industry was heavily protected. The industry used inefficient production methods to produce obsolete products of low quality at high cost. Since 1983, various attempts were made to "liberalize" the industry. The overall effects have been accelerated growth, the entry of many new firms in the market place and an increased reliance on foreign technology and components. Four case studies, covering personal computers (PCs), colour TVs (CTVs), electronic switching equipment, and integrated circuits (ICs), demonstrate the impact which the government's new electronics policy has had on the industry's technological capabilities and international competitiveness. There is growing concern that liberalization has eroded the industry's technological base and made it far too dependent on imports. A policy shift is likely to occur in the near future to promote greater localisation of component production as well as local research and development ...