As part of a wider effort to boost the country's electronic manufacturing sector, the Indian government is encouraging large Indian companies to acquire foreign technology vendors which are struggling financially and have low market caps.
In a report by The Hindu Business Line Thursday, an unidentified senior official from the Department of Electronics and IT (DietY) said at least three presentations last week were made to the Ministry of Communication and IT and its minister, Kapil Sibal, proposing initiatives meant to "excite Indian companies for such opportunities as the market cap of many global companies [including] , and are at a very low level".
One internal presentation made to the ministry, called "Marketing of ESDM (electronic system design and manufacturing) Policies" recommended customized presentations for major conglomerates such as Tata and Reliance, highlighting to them opportunities with regard to overseas companies that are not doing well globally, the report said.
The government is hoping Indian companies would consider such initiatives and take advantage of two recent policies-- the Electronics Manufacturing Clusters (EMCs) and Modified Special Incentive Package Scheme (M-SIPS)--aimed at promoting electronic manufacturing in the country through financial incentives such as subsidies and reimbursements, it added. These policies will help create a market where India exports, rather than imports, products, according to the unnamed DietY official.
The Indian government is also making other efforts to help achieve its ESDM goal, including a roundtable with major organizations and industry leaders from ESDM companies, and inviting companies which do not yet have manufacturing in India. There are also plans for delegation visits, led by Sibal, starting January next year to countries such as Japan, Korea, Germany, Sweden, Belgium, Israel, and the United States, the report said.