India plans more tech institutes, ignores electronics sector

BENGALURU, India — The government is adding three more branches to the Indian Institutes of Technology, but largely ignored electronics industry concerns in an updated technology policy.

The research network now includes seven technology institutes. Two additonal Indian Institutes of Science also will be formed.

The three new technology institutes will be based in Andhra Pradesh, Bihar and Rajasthan states; the two new science institutes will be located in Madhya Pradesh and Kerala states.

A $25 million National Research Network also will be launched to link Indian research institutes through a broadband connection.

The research expansion was part of India's annual policy statement. Indian policy makers largely ignored the demands of the nation's electronics sector. The National Association for Software Companies (Nasscom) had sought continuing concessions for software services companies. especially since the slumping U.S. dollar is hurting profits and threatening an economic slowdown in the tech sector.

Nasscom expressed disappointment with the new tech policy, but added it would continue to work with policy makers.

India's electronics manufacturing industry only managed to gain cuts in customs duties on some items used in the IT and electronics hardware sectors.

The new policy sidestepped the issue of how to encourage industry R&D activities, a key demand of the industry here.