Electronics industry growth in India
Atmanirbhar Bharat, which translates to Self-Reliant India, is a vision put forth by our beloved Prime Minister, Narendra Modi during the coronavirus pandemic. He emphasized that the current state of the world has made us realize that self-sufficiency is the only path to development. The concept of Atmanirbhar Bharat aims to ensure that the 21st century belongs to India.
The electronics industry in India has been steadily witnessing a steep growth in the recent past , thanks to the government policies and Atmanirbhar Bharat initiative, rising domestic demand, and increasing exports. According to a report by India Brand Equity Foundation (IBEF), the electronics market in India is expected to reach $400 billion by 2025, making it the third largest in the world.
Several key factors driving the growth of the electronics industry in India are:
The National Policy on Electronics 2019 (NPE 2019), which aims to promote domestic manufacturing and export of electronics, create a conducive ecosystem for innovation and attract global investments.
The Production Linked Incentive (PLI) scheme, which offers incentives to manufacturers of mobile phones, electronic components and other specified electronic goods, based on their incremental sales and value addition.
The Modified Special Incentive Package Scheme (MSIPS), which provides capital subsidy and tax benefits to electronics manufacturing units in designated areas.
The Electronic Development Fund (EDF), which supports research and development, innovation and intellectual property creation in the electronics sector.
The growing demand for consumer electronics, especially smartphones, laptops, tablets, smart TVs and wearable devices, among the young and tech-savvy population of India.
The ever increasing adoption of digital technologies, such as cloud computing, artificial intelligence, internet of things, and 5G,requires high performance and energy efficient electronic devices and components.
The expanding export market for Indian electronics, especially to the Middle East, Africa and South Asia, where India has a competitive edge in terms of quality, cost, and delivery.
The electronic industry in India has immense potential to contribute to the economic growth, employment generation and technological advancement of the country. However, there are also some challenges that need to be addressed, such as:
The dependence on imports for critical components and raw materials, which exposes the industry to global supply chain disruptions and currency fluctuations.
The lack of adequate infrastructure, skilled manpower and testing facilities for electronics manufacturing.
The high cost of capital and power, which affects the profitability and competitiveness of the industry.
The complex regulatory environment and policy uncertainties, which create hurdles for ease of doing business and investment.
The electronic industry in India is at a crucial juncture, where it can leverage its strengths and opportunities to become a global leader in electronics manufacturing and innovation. To achieve this vision, the industry needs to collaborate with the government, academia and other stakeholders to overcome the challenges and create a sustainable and vibrant ecosystem for electronics in India.
The Atmanirbhar Bharat initiative is a significant step towards realizing the vision of “One Nation, One Market” and establishing India as the electronic factory of the world.