Where's India's R&D?Imports 70 percent electronics

Bangalore: India is heavily dependent on imports of electronic goods from countries like the U.S. and China to meet its domestic demand. In spite of having a tax exemption of 150 percent, the Indian industries spend very little on the research and development, said a study. More than 70 percent of electronics appliances demand is met through imports, the study revealed. The joint study done by the Associated Chambers of Commerce and Industry of India (Assocham) and Ernst and Young points out that the Indian industry spends only $10 million on research and development.

"Meagre spending on research and development by electronics industry has increased India's dependence on electronics imports inspite of the 150 percent tax exemption under Income Tax Act Section 35 (2AB)," said Sajjan Jindal, President, Assocham.

Imported electronic goods counted to $19.77 billion in recent times, as export earnings were $3.17 billion.

"More than 35 percent of electronics appliances imports in India are sourced from China," said the study.