The Ministry of Electronics and Information Technology in India embarked on an ambitious program to make the country a global hub for the manufacture of electronics through incentives for foreign players to ‘Make in India’. In the bid to make the country a world hub for electronics manufacturing, the government embarked on this program, with amendments made in the Modified Special Incentive Package Scheme. Also, the government has laid down a vision of ‘Net Zero imports’, wherein all electronics would be produced within India by the year 2020.
BOOSTING THE INFORMATION TECHNOLOGY SYSTEMS
While work is underway, the biggest challenge for the Indian government is to improve the domestic electronics manufacturing industry, aside from the lucrative mobile industry. One of the ways of boosting the industry is improve IT training. Admitting the challenges ahead, the Ministry of Electronics and Information Technology senior official declared that the review plan has just begun. The idea is to enhance India’s electronics manufacturing to achieve the zero imports target as early as possible. Furthermore, the plan is to provide subsidy to allied manufacturers and not the mobile ones.
CHALLENGES FOR THE OTHER E-SECTORS
Figures display that other sectors in the electronics field would be hard pressed even with the incentives provided by the government to match the story of mobile growth. Data from the ministry reveals that mobile phones manufacturing has reached 22 crore in 2016-2017. When it comes to value, the sector is estimated to be at Rs 90,000 crore in 2016-2017.
DIGITAL INDIA VISION
The vision of making India digital is possible with enhanced Information Technology training. The most crucial aspect of this is the digital governance and to link bank accounts to Aadhar cards to avoid benefits. This is a strategy that officials claim could help in transforming India. The electronics industry of India is one of the fastest-growing and biggest industries in the world. It comprises electronic products and components to manufacture these products. The industry in 2015 was valued at $75 billion, despite the weak global economy. The sector underwent an evolution from primarily a consumption-driven market into one with manufacturing capability that caters to both local and overseas demand.
The ESDM or the Electronic System Design and Manufacturing sector offers lucrative opportunities for investors. The FDI or the Foreign Direct Investment equity inflow witnessed an increase in the last couple of years. Government initiatives provide an impetus to the electronics manufacturing industry. Digital India aims in ensuring all government services will be accessible to the people electronically. With the growth of revenue that is driving demand for electronics and the focus of the government for e-governance initiatives, Digital India is more likely to spur the growth in the sector. Furthermore, there is also a considerable demand for electronics that are high-end. The field of appliances and consumer electronics is predicted to grow at $20.6 billion by 2020.
VAST TALENT WITH STRONG DESIGN CAPABILITIES
India boasts of a huge talent pool with strong capabilities in design. The work force is not only skilled, it is also cost-effective. Additional boost is provided in this field via a host of skill enhancement and development initiatives. This resulted in a big number of global companies setting up manufacturing unites in the country. To make India the worldwide hub for electronics manufacturing, a budgetary provision of $114 million was made towards incentive schemes such as EDF or Electronics Development Fund and M-SIPS or Modified Incentive Special Package Scheme in fiscal year 2017-18. The boost in allocation was made to keep pace with the growth of the number of investment proposals received within the industry. This likely would reduce dependence on imports.
MAKING INDIA A MORE TRANSPARENT ECONOMY
Technology-backed initiatives would help India become a more transparent economy. The government budget proposed a slew of digitalization initiatives, which include optical fiber network expansion, launch of the ‘Digi Gaon’ initiative that’s aimed to provide telemedicine, skills and education through technology and new schemes for promoting use of the mobile app BHIM. The budget proposals are transformational and is designed to make the country a transparent economy. Highlighting the underlying technology trust on programs across-the-board, which includes relating to rural India, the Minister declared that rural has also become a part of the digital transformation. Now, the true aspiration lies in India’s rural economy that’s waiting to be tapped for extraordinary growth. After the Prime Minister’s move, the Union Budget gave a huge push towards India digitalization. The Union Budget has incentives that would help ease the digital transaction to eliminate black money.
Making India the electronics manufacturing hub in the world is transformational. It has inclusive budget that is digitally empowering and is designed to make India the top destination for the manufacture of electronic products.
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