IESA shares overview on electronics and semiconductors sector in 2016 and updates on 2017. The prime body also puts expectation from the upcoming Union Budget 2017
Global brands like Huawei, Tristone Flowtech Group, Tata Power, LeEco, Zopo Mobile, Panasonic Corporation, Havells India Limited, Airbus, etc. have already invested in India. The country has also become one of the most attractive investment destinations in the manufacturing destination.
India Electronics and Semiconductor Associations (IESA) in its latest report has shared 2016 update and 2017 possibilities on the electronics and semiconductors sector, along with its expectations from government on the upcoming Union Budget.
The Prime ESDM body said that 40 new mobile manufacturing units have been set up in the country, 12 mobile components and accessories units were established.
The Foreign Direct Investment (FDI) in electronics manufacturing has reached an all-time high of Rs 123,000 crore (US$ 18.36 billion) in 2016, from Rs 11,000 crore (US$ 1.65 billion) in 2014; on the back of enabling policies of the government and its Make in India initiative, wrote IESA.
Other Key Predictions from IESA for 2017 includes:
Design to manufacturing
Design has been the key strength of the Indian ESDM Industry since more than a decade. In 2017, we will witness design getting converted in to manufacturing and enriching the supply chain and the overall ecosystem.
In 2017, companies will not only design products to specifications but also consider overcoming potential challenges that could occur during the manufacturing stage and will definitely move up the value chain.
Value added manufacturing
It is expected that more Mobile Phone Companies will set up shops in India and it will gradually move from only assembly to value add manufacturing. Policies like MSIPS and EMCs are already in place to get benefitted from. Now with GST rolling it will be a boon to the ESDM industry.
Exploring new markets
Japan, Taiwan, Singapore, Israel, United States are the few countries that the government and the industry would watch out for. Partnership with these countries will be highly beneficial for the growth and up-gradation of the ESDM industry in India.
However, we believe the market for India to export electronic products will be its neighbouring SAARC regions and Middle East and Africa, UAE being a major importer of Indian goods. Companies are planning to expand their local manufacturing in India and make the country an export hub specifically to cater these markets. We may observe a similar trend starting from 2017
Startups in ESDM
Startups will continue to play a major role in the domains like Internet of Things, ecommerce, etc. There are 21,000+ start-ups in India which are dedicatedly working in the tech space across various domains, including technology-based solutions that will transform human lives and societies; with seamless connects between the cyber and the physical worlds.
There is a huge potential for India in this booming IoT domain and the technological know-how is at par with the global standards. Recently a lot for successful startups are from Tier II and Tier III cities. We will witness more and more entrepreneurs in the ESDM space from Tier II and Tier III cities in the forthcoming year.