Tuesday, August 27, 2013: Following the bulging import bills and an alarming lack in electronics manufacturing has forced the Indian government to seek out companies with the help of venture capital firms, which could be invested upon.
According to The Department of Electronics and Information Technology (Deity), it is in thorough consultation with venture capital firms and is ready to invest an amount of Rs 1 billion in one of the projects which could be expected to resume next month.
As per the plans, the government will buy stakes of 15 per cent to 20 per cent of certain companies as a part of the investment project. The rest of the investment will be made by venture capital firms which are currently involved in seeking out the appropriate startups in hardware and manufacturing. Indian imports about 90 per cent of its equipment from foreign countries rather than manufacturing it.
Ajay Kumar, the head of electronic and hardware manufacturing, Deity, said that the government has a very low risk taking ability and thus will be helped out by venture capital firms who are professionally established in managing and investing upon start-ups. He added that this initiative is aimed towards making India self dependent in electronic manufacturing.
According to estimates, the value of electronic imports in the current pace will cross the $300 billion mark by 2020 and will be even exceeding the import of crude oil requirements of the country. Ajay, however, didn’t want to divulge any information of the details of the venture capital firms that has been talked to.
