Supply Chain Still a Roadblock in India’s Electronics Manufacturing Leadership Journey

Article By : Stephen Las Marias

Despite India's strength and capabilities in electronics manufacturing, challenges remain for it to become one of the global powerhouses in the manufacturing industry.

India is on its way to become a global hub for electronics manufacturing, with the Government setting up initiatives, programs, and policies designed to attract investments, as part of the overall vision of a self-reliant India (Atmanirbhar Bharat). According to the India Brand Equity Foundation (IBEF), India witnessed a substantial spike in demand for electronic products in the last few years, mainly attributed to the country’s position as the second-largest mobile phone manufacturer worldwide, and surge in internet penetration rate. This is also because of Government attributes high priority to electronics hardware manufacturing—one of the crucial pillars of “Make in India”, “Digital India” and “Start-up India” programs. IBEF notes that the electronics system design and manufacturing (ESDM) sector plays a vital role in the government’s goal of generating $1 trillion of economic value from the digital economy by 2025. With various government initiatives aiming to boost domestic manufacturing, India has already started witnessing initial movement with increased production and assembly activities across products such as mobile phones and other consumer electronics. [caption id="attachment_14697" align="alignleft" width="175"] Krishna Chaitanya Kamasani[/caption] “According to the Confederation of Indian industries (CII), India is now the fifth largest manufacturing country in the world. In Asia, India ranks third, after China and Japan,” notes Krishna Chaitanya Kamasani, Director of Holtek Semiconductor India. “The flagship program ‘Make in India’ aims to increase the share of manufacturing of the GDP to 25% by 2022, create 100 million new jobs, and make India a lucrative investment destination and a global manufacturing hub.” One scheme, the $1.65 billion Production-Linked Incentive (PLI) scheme for telecom and networking products, under the Department of Telecom (DoT), is expected to bring in investments in manufacturing of telecom and networking products and create direct and indirect employment. “Similar PLI schemes in mobile phone manufacturing has brought in companies like Samsung to manufacture in India. These schemes will certainly create an ecosystem for electronics manufacturing services [EMS],” says Achilles Chiotis, Vice President of Strategic Magnetics Marketing at Bourns Inc. Bourns is a manufacturer of automotive electronic components, circuit protection, magnetic and resistive products, and sensors and controls. [caption id="attachment_14698" align="alignleft" width="175"] Daphne Tien[/caption] “The Indian semiconductor and manufacturing ecosystem is going through massive changes with the innovation of disruptive technologies and digital transformation,” says Daphne Tien, Vice President of Marketing & Business Development at Mouser Electronics APAC. “Other than that, the industry is exploring numerous opportunities with the expansion of IoT [Internet of Things], which is certainly the talk of the town spreading across all industries for semiconductor and electronics components. Key trending technologies influencing the Indian electronics industry in the current and near future are mainly 5G, artificial intelligence [AI], robotics, industrial automation, machine learning, quantum computing, block chain, and automotive.” Tien notes that India also has a burgeoning startup environment, which is further fostering technology business innovations across the country. “Most of the startups are coming in the field of design, development, and manufacturing of IoT-enabled applications and related hardware products, which involve embedded systems, communications devices, sensors, and actuators,” says Edward Pan, Sr. Technical Marketing Manager, Rigol Technologies.

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