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India China war situation is affecting the Electronic industry. How will the industry manage the loss?

“What good is an idea if it remains an idea? Try. Experiment. Iterate. Fail. Try again. Change the world.”

With India toughening its stance against China, it will get increasingly difficult to procure electronics from China in near future. One of the biggest challenges for the Indian electronics manufacturing sector is its excessive dependence on imports. India imports over $ 60 billion worth of electronic components, raw materials, assemblies and electric equipment’s each year from China. This will surely affect business of the Electronics industry in the short term. The economic interdependence of the two neighbours is too deep to be ignored.

Kunal Nandu, Director, Vinay Electrical Solutions

The India-China clash has definitely impacted and would vary from one segment to another, depending on the extent of localisation achieved. For example, import dependence is higher in the electronics as well as industrial, power and automotive electronics segments. This gives India some leeway to reduce its dependence on imports, and heed growing calls for self-reliance.

However, India has potential to be a global major in Electronics. The players in the market can source this opportunity and start their own manufacturing unit by supporting ‘Make in India’ movement. There will be a need to develop a complete ecosystem right from manufacturing of semiconductors to mass production of Electronic devices and not in bits and parts. More Collaborations would help in bringing best technology to India which is important to create an Infrastructure and capable of delivering as per the demand. This will surely change the market situation to trade within the country and also compete the global markets. Many Electronic companies have already confirmed their investment for manufacturing in India.

Some of the governments initiatives like production linked incentive would surely lead to growth in the Electronic Industry. The changing work patterns post pandemic outbreak would also ensure growth of the Electronic industry and the early movers would definitely get an advantage over their peers.


Nitisha Dubey

I am a Journalist with a post graduate degree in Journalism & Mass Communication. I love reading non-fiction books, exploring different destinations and varieties of cuisines. Biographies and historical movies are few favourites.

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