Vision Document for the electronics sector today, titled “$300 bn Sustainable Electronics Manufacturing & Exports by 2026

 

Ministry of Electronics and Information Technology, in association with ICEA, released a 5-year roadmap and Vision Document for the electronics sector today, titled “$300 bn Sustainable Electronics Manufacturing & Exports by 2026.” This roadmap is the second volume of a two-part Vision Document – the first of which titled “Increasing India’s Electronics Exports and Share in GVCs” was released in November 2021. This report provides a year-wise break-up and production projections for the various products that will lead India’s transformation into a US$300 billion electronics manufacturing powerhouse, from the current US$75 billion. Amongst the key products that are expected to lead India’s growth in electronics manufacturing include Mobile Phones, IT Hardware (laptops, tablets), Consumer electronics (TV and audio), Industrial electronics, Auto electronics, Electronic components, LED Lighting, Strategic electronics, PCBA, Wearables and hearables, and Telecom equipment. Mobile manufacturing that is expected to cross US$100 billion annual production - up from the current US$30 billion - is expected to constitute nearly 40% of this ambitious growth.

 Scale up of domestic manufacture by 2.2X in 5 years appear realistic with PLI schemes but can India increase exports by 10.3X in 5 years?

Approval of National Policy on Electronics 2012

The policy proposes the following strategies: 

(i) Creating eco-system for globally competitive ESDM sector: The strategies include provision of fiscal incentives for investment, setting up of electronic manufacturing clusters, preferential market access to domestically manufactured electronic products, setting up of semiconductor wafer fabrication facilities, industry friendly and stable tax regime. Based on Cabinet approval, a high level Empowered committee has been constituted to identify and shortlist technology and investors for setting up two semiconductor wafer manufacturing fabrication facilities. Based on another Cabinet approval a policy for providing preference to domestically manufactured electronic goods has been announced. Separate proposals have also been considered by the Cabinet for approval of Modified Special Incentive Package for the ESDM Sector and for setting up of Electronics Manufacturing Clusters (EMCs). 

(ii) Promotion of Exports: The strategies include aggressive marketing of India as an investment destination and providing incentives for export, 

(iii) Human Resource Development: The strategies include involvement of private sector, universities and institutions of learning for scaling up of requisite capacities at all levels for the projected manpower demand. A specialized Institute for semiconductor chip design is also proposed. 

(iv) Developing and mandating standards to curb inflow of sub-standard and unsafe electronic products by mandating technical and safety standards which conform to international standards. 

(v) Cyber security: To create a complete secure cyber eco-system in the country, through suitable design and development of indigenous appropriate products through frontier technology/product oriented research, testing and validation of security of products. 

(vi) Strategic electronics: The strategies include creating long-term partnerships between domestic ESDM industry and strategic sectors for sourcing products domestically and providing Defense Offset obligations for electronic procurements through ESDM products. 

(vii) Creating ecosystem for vibrant innovation and R&D in the ESDM sector including nanoelectronics. The strategy includes creation of an Electronic Development Fund. 

(viii) Electronics in other sectors: The strategy includes supporting and : developing expertise in the electronics in the following sectors of economy: automotive, avionics, Light Emitting Diodes (LEDs), Industrial, medical, solar photovoltaics, Information and Broadcasting, Telecommunications, Railways, Intelligent Transport Systems, and Games and Toys. 

(ix) Handling e-waste: The strategy includes various initiatives to facilitate environment friendly e-waste handling policies. 

Global Innovation Networks (GIN): monograph on Electronics by Dieter Ernst

This monograph titled `A new geography of knowledge in the electronics industry? Asia's role in Global Innovation Networks' gives a detailed account of GIN, that integrates dispersed engineering, product developments and research activities across geographic borders. Innovative capabilities require R&D and patents and also soft capabilities such as:

• sense and respond to market trends
• recruit and retain knowledge workers
• engage in global sourcing of knowledge from components to ideas
• raise money
• deliver unique and user friendly designs
• develop innovation process management
• manage knowledge exchange
• participate in global standard setting
• develop branding strategy

Obviously the `soft skills' are in short supply.

What ails Indian electronic industry. Has the downfall started with renaming `Department of Electronics' to `Department of Information Technology'?
Download the report from : http://www.EastWestCenter.org/pubs/3242