"Manufacturing electronic goods in the next big thing in India," the Confederation of Indian Industry, Karnataka, immediate past chairman, L. Krishnan said.
Currently, India is more of a consumption market rather than a manufacturer.
"Over the years, we have not put together a policy which is facilitating investment in electronic manufacturing," he told Bernama on the sidelines of Showcase Malaysia, a trade exhibition by the Malaysia External Trade Development Corporation.
This the fourth edition of Malaysia's solo exhibition in India. The last three editions of Showcase Malaysia was held in Mumbai, Pune and Chennai in 2011, 2012 and 2013, respectively.
The three-day exhibition kicked off on Thursday at the Bangalore International Exhibition Centre (BIEC) and will open to the trade/business community and the public till May 31, 2014.
A total of 25 companies with varied business interest such as automotive, furniture, healthcare, wellness products, food and beverages, franchises and business services are participating in the exhibition.
Krishnan said efforts was made a year ago realising that if the country don't fix the electronic manufacturing sector, the cost of importing electronic goods would be bigger than petroleum products.
Consequently, the government started focusing on a manufacturing policy for electronic goods and envisaged incentives up to Rs60,000 crore (about US$10.2 billion) to attract electronic manufacturing into the country over the next 10 years.
The new government also recognised the importance of the sector to the country and more policies towards the path can be expected in the next six months or a year, he said.
"Hence, Malaysian companies that has great competency in the sector should leverage on this potential," said Krishnan.
Besides manufacturing electronic goods, he said there were also a huge potential in sectors such as energy, refinery and telecommunication among others.
"Malaysian companies should take advantage of the this and deepen their engagement with India, which would further enhance bilateral ties between the two countries," he said.
To date, Malaysia's total investments in India was valued at US$2.75 billion involving various sectors.
For the first quarter of 2014, total trade between Malaysia and India was more than US$3 billion out of which imports from India were recorded at about US$1 billion.
Of the US$13.4 billion trade with India in 2013, Malaysia exported goods valued at US$8.2 billion and imported goods worth US$5.2 billion, with US$2.9 billion balance of trade in Malaysia's favour.