In recent years, India has witnessed a remarkable transformation in the electronics manufacturing sector, positioning itself as a significant competitor to China. The shift is attributed to factors such as the availability of cost-effective labor, the emergence of homegrown contract manufacturers, and initiatives by the Indian government. With manufacturing costs now aligning with those in China, Indian companies are venturing into global markets, looking to capture a share of the electronics manufacturing industry. Here’s a closer look at how Indian firms are making strides in electronics production and export.
Key Advancements in India’s Electronics Manufacturing Industry
India’s electronics manufacturing industry has been experiencing significant growth, thanks to a combination of factors, including government initiatives and the emergence of local contract manufacturers. Here are some key advancements and features characterizing India’s electronics manufacturing landscape:
Competitive Manufacturing Costs: The most prominent development is India’s success in achieving manufacturing costs comparable to China. This alignment has attracted global tech companies to explore India as a viable alternative for electronics production.
Homegrown Contract Manufacturers: Indian contract manufacturers like Dixon Technologies play a pivotal role in the industry’s growth. Dixon Technologies produces a wide range of electronics, including smartphones, laptops, and consumer electronics for various brands. They have been instrumental in reducing the cost gap between India and China.
Diverse Export Market: Indian companies, traditionally focused on the domestic market, are now expanding their horizons. Manufacturers like Dixon Technologies plan to export smartphones to the UK and Germany. This diversification aligns with the Indian government’s Performance-Linked Incentive (PLI) scheme, which encourages companies to boost local production.
Beyond Smartphones: The electronics production landscape extends beyond smartphones. Dixon Technologies, for instance, produces components for home appliances, such as inverter controller boards for air conditioners. The export of these components is on the horizon.
Havells’ Success Story: Havells, another India-based electronics company, has ventured into contract-based manufacturing for air conditioners, producing units for leading global brands. These units are exported to the United States and West Asia. Havells is also looking to expand into the production of washing machines.
Ambitious Export Goals: Indian manufacturers are setting ambitious export targets. For example, Dixon Technologies aims to achieve export revenues of Rs 2,000-2,500 crores in the next fiscal year, representing a significant YoY growth. This indicates a promising future for India’s electronics manufacturing capabilities.
India’s electronics manufacturing industry is rapidly evolving, with competitive costs, a growing export market, and a diversification of products beyond smartphones. These developments highlight India’s emergence as a significant player in the global electronics manufacturing sector.
Via @ economictimes
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