Cluster scheme to boost electronics manufacturing: CII

New Delhi, July 5 (IANS) Setting up of electronics manufacturing clusters will boost output of electronics products in India, industry lobby Confederation of Indian Industry (CII) said Thursday.

Reacting on the union cabinet's approval to the scheme of setting up dedicated zones for manufacture of electronics products, the CII said the move would make India globally competitive in production of electronics goods.

India accounts for only about 1.5 percent of the global electronics production. Countries like China, South Korea and Taiwan dominate the global electronics markets.

The cabinet meeting chaired by Prime Minister Manmohan Singh Wednesday approved the proposal to offer financial support for the development of the clusters in different parts of the country.

Vinod Sharma, co-chairman, CII national committee on Information, Communication Technology and Electronics (ICTE) manufacturing, said the government's move would help boost output by removing bottlenecks in the industry.

"It would make the industry competitive, attract investments, generate employment, create additional revenue and lead to lesser dependence on imports," Sharma said.

The cluster concept imparts certain inherent natural manufacturing advantages of agglomeration and scale, bringing together required infrastructure, skills, and supporting institutions.

"The electronics manufacturing clusters have potential advantages like increased productivity of the companies in the cluster, driving innovation, cutting down unproductive costs and reduction of costs through shared resources," said Chandrajit Banerjee, director general, CII.