Electronics Manufacturing - The Focus Shifts to India

December 15, 2012Procurement Consulting – Brickwork Sourcing

Electronics Manufacturing in India – The Future Electronics Manufacturing in India – The Future RoadRoad

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The current electronics market in India is close to US$100 billion and is estimated to reach US$400 billion by 2020.

Two major emerging areas in the electronics manufacturing market in India are the chip design and embedded software industries.

The period between 1984 and 1990 was considered the golden age of Indian electronics.

The Indian electronics manufacturing industry took off from 1965 with 1982 and 1988 witnessing major milestones in the growth of the industry with the advent of the color television and digital exchanges.

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The Indian Electronics Manufacturing Market

Foreign investment into the electronics manufacturing sector in India is dependent on government policies to a major extent with foreign technology induction being encouraged both through FDI and foreign technology collaboration agreements.

The electronics manufacturing sector has been growing in India witnessing a CAGR of 31% between 2004–2005 and 2009–2010.

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The Indian Electronics Manufacturing Context

Global OEMs de-risking China has given rise to a trend of shifting mass manufacturing bases to Asia.

Over the years, the rise of SEZs have also contributed to growth in the electronics manufacturing sector.

Manufacturing bases of many firms will be shifted to India from neighboring countries, which is an encouraging sign.

Measures to boost investor confidence are required in this space.

The other major area of challenge for India is constantly updating all its resources to meet and mitigate the challenges of manpower shortage.

New business areas have to be explored to increase customer base.

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Major Driving Factors and Challenges

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13 April 2023

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