India’s Electronics Manufacturing Sector Needs Government Boost to Improve Production Volume, says ESC

Despite India aggressively promoting manufacturing on its shores via Prime Minister Narendra Modi’s pet project, Make in India, the electronics sector in the country has reported that electronics production has fallen short of projections. In view of this shortfall, the Electronics and Computer Software Export Promotion Council (ESC), has appealed to the government to devise policies and frameworks that will help accelerate the electronics manufacturing in India.

According to representatives of the ESC, the rate at which electronics production is progressing in India will make it impossible to reach even half the volume of electronics imports by 2020. Saumen Chakraborty, the chairman of the ESC, said that the total electronics production of India was valued at US$31 bn in 2014-2015. The estimations, however, were rather ambitious: US$70 bn for this period. He also said that for India to import all of its electronics components would be a rather difficult proposition.

Industry experts are opining that if India’s electronics sector is unable to reach the targeted production volumes despite the deployment of the Make in India program, it indicates toward a pressing need to create policies to help accelerate electronics manufacturing. The ESC’s chairman recommends focusing on indigenous manufacturing as a means to cut back on the high level of reliance on electronics imports.

ESC, which is an export promotion group backed by the Indian government, has estimated that the demand for electronics in India will surpass a value of US$400 bn by 2020. On the other hand, if the current production rate is maintained, India’s local electronics production will find it difficult to exceed US$100 bn by the same year.
However, if India is to put local electronics manufacturing on pace to meet projections, then a sharper focus will have to be laid on improving raw material supply chains, honing talent, and upgrade electronics manufacturing technology. The ESC also sees providing incentives for electronics exports to Europe as a means to improve production.


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