Poised For Growth
Make in India campaign has opened new avenues for electronics component industry but government needs to work on a strategy towards creating a competitive manufacturing landscape, say experts.
India is a sizable economy and the electronics component industry is also growing at a modest rate. However, domestic production is still not enough to meet the demand. Import of electronics (semi-finished and finished goods and components) is much more than domestic production. In future, the gap between demand and supply though domestic production will increase. According to a research report published by Markets and Markets, the global surface mount technology (SMT) market is expected to reach a turnover of US$ 5.42 billion by 2022, growing at a CAGR of 8.9 percent between 2017 and 2022. The market’s growth will be primarily driven by higher demand for miniaturized consumer electronics products and the enhanced adoption of electric vehicles with advanced features for safely and connectivity.
Rajoo Goel, Secretary General, Electronic Industries Association of India (ELCINA) says, “Components are the building blocks of Electronic Systems Design and Manufacturing industry. The Achilles heel of the industry has been the Information Technology Agreement (ITA)-1 agreement under WTO which stymied the investments and growth of this industry at a critical time when the nations leading in high tech and electronics were progressing rapidly. Thus India has lagged behind increasingly in components manufacturing since 2005 when ITA-1 was implemented.”
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- Economic TimesMumbai Edition03May2019Page14Textonly-1557208239.pdf