Overview of the Electronics Industry in India
The Indian electronics industry has seen tremendous growth over the past decade. According to the India Electronics & Semiconductor Association (IESA), the industry was valued at $118 billion in 2018-19 and is projected to reach $400 billion by 2025. This growth is driven by several factors, including:
- Rising domestic demand for electronic products
- Government initiatives such as Make in India and Digital India
- Availability of skilled labor at competitive costs
- Presence of leading global electronics manufacturers
The electronics industry in India encompasses a wide range of products, including consumer electronics, industrial electronics, computer hardware, mobile phones, and electronic components. The mobile phone segment is the largest, accounting for around 35% of the total electronics market in India.
Major Electronics Manufacturing Clusters in India
India has several electronics manufacturing clusters spread across the country. These clusters have emerged as hubs for electronics production, attracting investments from both domestic and international companies. Here are some of the key electronics manufacturing clusters in India:
1. Noida, Uttar Pradesh
Noida, located in the National Capital Region (NCR), is one of the largest electronics manufacturing hubs in India. The city is home to several leading electronics companies, including:
- Samsung
- LG
- Oppo
- Vivo
- Dixon Technologies
Noida offers several advantages for electronics manufacturers, such as proximity to the national capital, well-developed infrastructure, and availability of skilled labor. The Uttar Pradesh government has also announced several incentives for electronics companies, including capital subsidies and tax exemptions.
2. Sriperumbudur, Tamil Nadu
Sriperumbudur, located near Chennai, is another major electronics manufacturing hub in India. The city is known for its electronics and automotive manufacturing industries, with several global companies having their production facilities here. Some of the leading electronics manufacturers in Sriperumbudur include:
- Foxconn
- Salcomp
- Dell
- Motorola
- Nokia
Tamil Nadu has been a pioneer in attracting electronics manufacturing investments, with the state government offering several incentives such as land subsidies, power tariff concessions, and skill development initiatives.
3. Bengaluru, Karnataka
Bengaluru, often referred to as the Silicon Valley of India, is a major hub for electronics design and manufacturing. The city is home to several leading electronics and IT companies, including:
- Infosys
- Wipro
- Intel
- Texas Instruments
- Bosch
Bengaluru has a strong ecosystem for electronics manufacturing, with a large pool of skilled engineers, research and development centers, and a supportive state government. Karnataka has also announced several incentives for electronics companies, such as subsidies for land and capital investments.
4. Pune, Maharashtra
Pune, located near Mumbai, is emerging as a significant electronics manufacturing hub in India. The city has a strong presence of automotive and engineering industries, which has led to the growth of electronics manufacturing as well. Some of the notable electronics companies in Pune include:
- Bharat Electronics Limited (BEL)
- Whirlpool
- Haier
- Godrej
Maharashtra has announced several policies to attract electronics manufacturing investments, including the Electronics Policy 2016 which offers incentives such as power tariff subsidies and stamp duty exemptions.
Table: Key Electronics Manufacturing Clusters in India
| Cluster | State | Key Companies |
|---|---|---|
| Noida | Uttar Pradesh | Samsung, LG, Oppo, Vivo, Dixon Technologies |
| Sriperumbudur | Tamil Nadu | Foxconn, Salcomp, Dell, Motorola, Nokia |
| Bengaluru | Karnataka | Infosys, Wipro, Intel, Texas Instruments, Bosch |
| Pune | Maharashtra | Bharat Electronics Limited, Whirlpool, Haier, Godrej |
Government Initiatives to Promote Electronics Manufacturing
The Indian government has taken several steps to promote electronics manufacturing in the country. Some of the key initiatives include:
1. Make in India
Launched in 2014, the Make in India initiative aims to transform India into a global manufacturing hub. The initiative provides several incentives for companies to set up manufacturing facilities in India, including tax breaks, simplified regulations, and infrastructure support.
2. National Policy on Electronics (NPE) 2019
The National Policy on Electronics 2019 aims to position India as a global hub for Electronics System Design and Manufacturing (ESDM). The policy targets production of $400 billion worth of electronics by 2025, along with creating 1 crore (10 million) jobs in the electronics sector.
3. Production Linked Incentive (PLI) Scheme
The Production Linked Incentive (PLI) Scheme, announced in 2020, provides incentives to domestic and international companies for manufacturing electronics in India. The scheme offers incentives ranging from 4% to 6% on incremental sales of goods manufactured in India, over a period of five years.
4. Electronics Manufacturing Clusters (EMC)
The Electronics Manufacturing Clusters (EMC) scheme, introduced in 2012, provides financial assistance for creating world-class infrastructure for electronics manufacturing. The scheme offers financial incentives for setting up greenfield and brownfield EMCs, with a focus on providing high-quality infrastructure and logistics support.
Challenges and Opportunities
Despite the significant growth in electronics manufacturing, India still faces several challenges in realizing its full potential. Some of the key challenges include:
- Dependence on imports for electronic components
- Inadequate infrastructure and logistics support
- Shortage of skilled labor
- Complex regulatory environment
However, these challenges also present opportunities for growth and investment. The Indian government’s focus on promoting electronics manufacturing, coupled with the country’s large domestic market and skilled workforce, make it an attractive destination for electronics companies.
FAQ
1. What is the current size of the electronics industry in India?
As of 2018-19, the Indian electronics industry was valued at $118 billion, according to the India Electronics & Semiconductor Association (IESA).
2. Which is the largest electronics manufacturing cluster in India?
Noida, located in the National Capital Region (NCR), is one of the largest electronics manufacturing hubs in India, with several leading electronics companies having their production facilities here.
3. What incentives does the Indian government offer for electronics manufacturing?
The Indian government offers several incentives for electronics manufacturing, including tax breaks, simplified regulations, infrastructure support, and financial assistance for setting up Electronics Manufacturing Clusters (EMCs).
4. What is the target for electronics production under the National Policy on Electronics 2019?
The National Policy on Electronics 2019 targets production of $400 billion worth of electronics by 2025, along with creating 1 crore (10 million) jobs in the electronics sector.
5. Which segment accounts for the largest share of the electronics market in India?
The mobile phone segment is the largest, accounting for around 35% of the total electronics market in India.
Conclusion
India has emerged as a significant player in the global electronics manufacturing industry, with several key clusters across the country attracting investments from leading companies. The government’s focus on promoting electronics manufacturing through initiatives like Make in India, National Policy on Electronics 2019, and Production Linked Incentive Scheme has provided a boost to the industry.
While challenges remain, such as dependence on imports and inadequate infrastructure, the opportunities for growth are immense. As more companies look to diversify their supply chains and tap into the growing Indian market, electronics manufacturing in India is poised for significant growth in the coming years.