Karnataka MSMEs to capture 20% of the $ 400 billion opportunity in electronics

manufacturing sector by 2020

Bangalores Electronics City MSME cluster receives Rs 120 million from
Central and State governments to design and develop electronic products


October 07, 2014, Bangalore: Monitoring the growing annual demand across India from the current USD 71 billion
to USD 400 billion by 2020 in the Electronics Systems Design and Manufacturing (ESDM) sector, a cluster formed by
Micro, Small & Medium Enterprises (MSME) from Electronics City, Bangalore is aiming to cater to at least USD 80
billion of this domestic demand over the next six years.

This newly formed cluster in Bangalores Electronics City has raised Rs 140 million from both central and state
governments as well as its own members, to support start-ups and SMEs to design, test and develop electronic
products. The state government has sanctioned additional funds to boost the growth of the industry and address the
prevailing challenges. At present, hurdles faced by the industry ranging from power and water shortage, lack of R&D
and testing facilities, bad road conditions to hindrances at check posts are contributing to an unfavorable ecosystem
which the state government is likely to address.

Speaking while inaugurating the ELCIA EXPO, Sri. S R Patil, Minister of IT, BT and ST, Government of
Karnataka, conveyed, MSMEs are a crucial segment in the manufacturing landscape of the state and have
significantly contributed to Karnatakas economic growth. If the ESDM sector in Karnataka is equipped to capture
even 10% of the total domestic market of US$ 400 billion, it would be an achievement in itself.

The Government of Karnataka has augmented the number of incentives to home-grown companies to enter into
electronics manufacturing, particularly in electronics hardware, aerospace and defence sectors by leveraging the
growing talent. Nevertheless, focus should certainly be on R & D, innovation, collaboration and partnerships at all
levels. he added.

With the Government of Indias strong emphasis on promoting Indigenization and opening up of the defence segment
to FDI at 49%, Indian MSME segment will be playing a critical role in the entire supply chain for the Aerospace and
Defence sector (A & D sector).





Echoing on the developments in the ESDM sector, G. Raj Narayan, President, ELCIA Cluster and CEO, Radel
Advanced Technology Pvt. Ltd. said, India has a vast pool of quality scientists and engineers, which is
predominantly leveraged by the growing number of multinational OEMs who have set up their engineering and
design centres here. Indian MSMEs in the A & D sector are now offering tremendous opportunities for such talent to
develop in all fronts and in the process empower India as well.

Electronic clusters and Industry bodies are increasing playing a vital role in setting up and sustaining an ecosystem
that is critical for the electronics industrys growth.

About Radel Advanced Technology:
Radel Advanced Technology Pvt. Ltd. is an ISO 9001:2008 certified design and manufacturing organization
promoted by technocrats with four decades of proven track records in the aerospace and electronics industry. Radel
Advanced Technology is another name for innovation, quality and dedication, while upholding the highest ethical
standards of business. It possesses strong expertise and capabilities in not only designing and manufacturing
electronic equipment, but also reverse engineering and troubleshooting older and ageing systems of foreign OEMs. It
has achieved success in indigenous design and manufacture of electronic equipment as a replacement for imported
equipment.