Electronics Industry in India is growing at a rapid rate. Due to increase in digitisation, local demand for electronics goods such as smart TVs, phones and tablets is expanding day by day, thereby broadening the electronics market. In fact, according to a joint study by The Associated Chambers of Commerce and Industry of India (Assocham) and NEC Technologies, it is expected to grow annually at 41 percent between 2017 and 2020, creating a $400 billion market.
Being the creator of talent for the industry, an electronics professor must know the strength we have in India for development of these industries, the areas we need to work on, the technologies which are in demand right now and also about the support policies of the government.
The areas that are expected to play a major role in the development of electronics design market are IoT, automation, LED lighting, Artificial Intelligence (AI) and defence application. Moreover, the emerging technologies like next-generation wireless, AI and silicon photonics could become the prominent areas impacting electronics design market in near future.
The major strengths that India has are strong capabilities in embedded system design, a large number of electronics engineer graduates, increased demand due to increase in the number of Indian SMEs startups focussing on IoT. Yet there are some factors that serve as obstacles to the growth of Indian electronics industry. Some of them are a requirement of significant investment for R&D in a sector where margins are less., lack of experience in complex system design and 28% GST even on duty-free components.
Even though there is a significant supply of graduates in the market, there is a large gap between the skill sets required by the industry and the skill sets acquired by graduates. This acts as one of the prime factors in slowing the growth of this industry.
The government initiatives like ‘Make in India’ and ‘Digital India’, schemes like incentive package scheme (M-SIPS) and electronic development fund (EDF) are expected to play a positive role in the electronics industry. Other policies that will aid the growth of electronics design industry are an allowance of 100 percent FDI in the electronics hardware manufacturing, duty relaxation schemes like Export Promotion Capital Goods (EPCG) License, Electronics Hardware Technology Park (EHTP) and National Policy on Electronics (2012).