Electronic Component Manufacturers have always been a key part of the Indian economy. With globalization and the opening up of the Indian economy to foreign competition, the industry has undergone a lot of change in the past decade and a half. Today, the sector is one of the fastest-growing industries in India, with a current size of USD 26 billion, and is expected to grow to USD 300 billion by 2026. With over 6,000 companies, the sector employs over 4 million people.
From OLA electric scooters to TATA’s EVs, India is pushing for electric vehicles, and so is the Industrial engineering sector. The Indian electronics industry today is a vibrant and dynamic sector that is playing an increasingly important role in the country’s economic development.
The Indian Electronics Sector
The global pandemic has increased the rate of digitization to previously unknown heights, and technology is now involved in every aspect of life. While some sectors have suffered a downturn, personal computers, home appliances, and cell phones are still popular. With demand for electronic goods expected to increase in India, it is now the world’s second-largest mobile subscriber base.
What is driving the Growth of Industrial Engineering in India?
Artificial Intelligence, Machine Learning, the Internet of Things, AR, VR, and Robotics are all cutting-edge technologies that revolutionize the sector while raising demand for new electronic gadgets. India is already a global software developer and may become a significant player in the electronics market by improving its hardware manufacturing capabilities.
Businesses have achieved much better operational efficiency by combining conventional manufacturing processes with digital technologies to meet India’s ambitious goals of becoming a global competitor. Thanks to technology such as machine learning, businesses may use predictive analytics and Big Data to predict risks and prepare for them ahead of time.
In addition, the advent of 5G will provide:
- Fast and ultra-low latency internet.
- Making smart factories even more intelligent and accelerating developments in artificial intelligence.
- Machine learning.
The Collaboration of Private-Public Sectors
The Electronics Corporation of India Limited was set up under the Department of Atomic Energy in 1967 to generate self-reliance in nuclear electronics. ECIL has been playing a pivotal role in the growth and development of the Indian electronics industry over the past five decades.
BHEL is another Public Sector Enterprise (PSE) that has contributed significantly to India’s growth in the electronics industry. BHEL is India’s largest engineering and manufacturing company of its kind, and it has been at the forefront of developing indigenous technology for a wide range of products in areas such as power generation, transmission, and distribution.
The ISRO is another government organization that has been a critical player in developing the electronics industry in India. ISRO’s work in space technology has led to the development of several spin-off technologies that have found applications in a wide range of industries, including telecommunications, healthcare, and transportation.
The Indian semiconductor industry is currently at a nascent stage, with only a few companies operating in the market. However, this sector has immense potential for growth as the country looks to reduce its dependence on imported semiconductors. The government has taken many measures to promote the development of the domestic semiconductor industry, including setting up special economic zones (SEZs) and establishing venture capital funds.
Electronic Components Manufacturers after Atmanirbhar India
It is critical to understand that the goal of a “Self-Reliant India” can be realized if various Industrial engineering sectors ramp up their capabilities and technology adoption. The need of the hour is to develop an ecosystem that encourages innovation, protects intellectual property, emphasizes skill development, and creates infrastructure for the ecosystem.
Boosting export-led electronics manufacturing will make India more competitive in the global market. The Production Linked Incentive (PLI) programs, intended to help small businesses grow, are expected to provide a boost toward ensuring that large multinational firms bring their worldwide manufacturing and logistics capabilities to India.
The PLIs have kicked off India’s potential in electronics manufacturing, whether it’s Electric Vehicles, AI, Robotics, Biotech & Pharmaceuticals, and the country has a lot of promise.
However, there is still room to improve certain aspects like national infrastructure connectivity, establishing a strong local component ecosystem, and creating a robust supply chain.
To address environmental and social concerns, Indian electronic components manufacturers must effectively use resources and establish long-term sustainable domestic capabilities. A long-term science-based environmental action plan, resource-efficient sustainable manufacturing processes, and investment in surrounding communities will help the industry develop into a healthier, more equitable one with a bright future.