1 . |
Electronics Industry reported at USD 1.75 Trillion is the |
this field . |
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largest and fastest growing manufacturing industry in the |
3 . |
Electronics is characterized by high velocity of |
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world . It is expected to reach USD 2.4 Trillion by 2020 . The |
technological change . Consequently the life cycle of |
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demand in the Indian market was USD 45 Billion in 2008- |
products is declining . As a result , the value of design and |
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09 and is expected to reach USD 400 Billion by 2020 . |
development in the product has increased quite |
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Domestic demand is expected to be driven by growth in |
significantly , Given India ' s growing strength in chip design |
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income levels leading to higher off-take of electronics |
and embedded software , the increasing importance of |
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products , automation demands of corporate sector and the |
design in product development has potential to make India |
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government ' s focus on e-governance . The domestic |
a favoured destination for ESDM . |
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production in 2008-09 was about USD 20 Billion . However , the actual value-addition in the domestically produced electronic product is very low , ranging between 5 to 10 percent in most cases . At the current rate of growth , the domestic production can cater to a demand of USD 100
Billion in 2020 as against a demand of USD 400 Billion and the rest would have to be met by imports . This aggregates to a demand supply gap of nearly USD 300 Billion by 2020 .
Unless the situation is corrected , it is likely that by 2020 , the electronics import may far exceed oil imports . This fact goes unnoticed because electronics , as a " meta resource " forms a significant part of all machines and equipment imported , which are classified in their final sectoral forms , for example , automobiles , aviation , health equipment , media and broadcasting , defence armaments , etc . It is also pertinent to note that Indian electronics hardware production constitutes only around 1.31 % of the global production . On the other hand , the share of global electronic equipment production of the largest contributing nation has increased from 17 % in 2004 to 33 % in 2009 .
Conversely , the country ' s imports are expected to rise from
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4 .
5 .
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ESDM is of strategic importance as well . Not only in internal security and defence , the pervasive deployment of electronics in civilian domains such as telecom , power , railways , civil aviation , etc . can have serious consequences of disruption of service . This renders tremendous strategic importance to the sector . We cannot be totally dependent on imported electronic components and products for such a sector .
The electronic components , which are basis of an electronic product , are low volume-low weight , cheap and easy to transport across the globe . Moreover , under
Information Technology Agreement-1 ( ITA-1 ) of the World
Trade Organization , which came into force in 1997 , a large number of electronic components and products are bound with zero tariffs making trade unrestricted across international borders . Also , the electronics manufacturing is characterized by high volume and low margins . All these have resulted in the electronics hardware industry being globally integrated with few large global players catering to a large part of the world .
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50 % to 75 % even as demand is rocketing . |
6 . |
Recent trends show that an increasing number of |
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2 . |
India is a recognised global player in software and software services sector . It lags behind in electronics hardware manufacturing capabilities , though it is increasingly becoming a destination for chip design and embedded software . The vision is to transform India into a global hub for electronics system design and manufacturing ( ESDM ) so as to meet the growing domestic and global demand . |
engineering and design activities are also being outsourced to Electronic Manufacturing Services ( EMS ) companies .
These companies are becoming Original Design
Manufacturers ( ODMs ) and also provide final system integration and logistical support . It is important to focus on increasing the footprint and the size of the EMS companies in the country .
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There are many challenges to advance the same – |
7 . |
India is one of the fastest growing markets of electronics in |
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infrastructure gap , tax structure , supply chain and logistics , |
the world . There is potential to develop the ESDM sector to |
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inflexible labour laws , limited R & D focus , inadequate |
meet our domestic demand as well as to use the |
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funding and limited value addition . Recognising the |
capabilities so created to successfully exports ESDM |
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importance and potential of the Electronics Sector , several |
products from the country . The National Policy on |
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economies in the Asia-Pacific region have repositioned |
Electronics aims to address the issue with the explicit goal |
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themselves through infrastructural investments and proactive policies to emerge as a global power-house in |
of transforming . |
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