Over the past few decades, India has always been the forerunner of consumer demand which is fuelled up by the significant GDP growth. Though the demand for high technology is increased in all sectors, electronic goods have claimed huge growth and growing up by existing estimates, the demand for hardware is supposed to grow high from US $45 billion in the year 2009 to US $400 by the year 2020.
The production is estimated to cross US $104 billion by 2020, making a difference of US $296 billion in production and demand. It gives a unique way for the companies in Electronics System Design & Manufacturing sector to consider India as next destination to meet the domestic needs of India.
Similarly, the government has started various plans for the manufacturing of electronics. Recently, the government has initiated NPE or National Policy on Electronics. The NPE is aimed to achieve the overall turnover of US $400 billion by the year 2020, including investment of whopping US $100 billion and job opportunities to over 28 million by the year 2020. Including turnover of US $55 billion of embedded software industry and design industry, it has achieved over US $80 billion of exports.
In addition, the policy is also looking to set up around 200 Electronic Manufacturing Clusters. Another main aim of the policy is to upscale creation of high end human resources significantly by 2020. In order to promote electronics sector, the Ministry of Electronics & Information Technology is installing a semiconductor wafer fab in India. With over 2000 chips designed every year and around 20000 engineers engaged in several departments of chip verification and design, India has become the leading semiconductor hub design. Every year, India is generating whopping US $2 billion of revenues for chip design.
Within the past few months, various other policy initiatives are approved, such as offering appealing financial investment in manufacturing electronics and giving preference to electronic goods which are domestically manufactured in all the procurements along with all the goods having security implications for India. Along with new units, the financial incentives are offered also for those importing from abroad.
When it comes to electronics, along with covering electronic hardware items related to office automation and IT, consumer electronics, telecom, electronic components etc, the ministry has covered a huge range of products, including automotive electronics, solar photovoltaic, avionics, LED, and medical electronics. To meet the needs of infrastructure, Electronics Manufacturing Cluster scheme will offer 50% of cost of logistics and infrastructure upgrades as grant from the government. India has no lack of talented and innovative workforce. Every year, India produces over 200,000 engineers and our human resource is India’s strength.