Future of Electronics & Defence Manufacturing in India

Vinay Shenoy, Chairman, India Electronics & Semiconductor Association
Tuesday, December 8, 2015
Vinay Shenoy, Chairman, India Electronics & Semiconductor Association
India has the right elements to build an excellent manufacturing eco-system and 'Make in India' initiative will act as a catalyst to change the face of our nation being a manufacturing economy. India has all the potential to emerge as the next Manufacturing hub in the world. Govt's 'Make in India' initiative is projected to make India a preferred manufacturing destination encompassing 25 sectors that includes ESDM, automobiles, chemicals, IT, aviation,design manufacturing, renewable energy, and several other sectors that rely heavily on electronics, expanding the opportunities to create employment, purchasing power, spending and supply. We believe the success of the MAKE IN INDIA program will create an "Orbit Changing Atmosphere" which will be conducive for major breakthroughs in design-led manufacturing. The government has been pushing for investments from all over globe and we've been getting positive responses from market leaders across industry segments.

The Indian Government, through the Department of Electronics and Information Technology (DeitY), has instituted a number of forward-looking policies to foster the growth of the Indian electronics ecosystem. Such policies are aimed at the holistic development of the ESDM industry by offering specific incentives for the development of each element in the value chain. Since the government has been encouraging companies to manufacture their products in India and we can already see a lot of traction happening under 'Make in India' initiative. Companies like Foxconn, Sony, Hitachi, Huawei and several other mobile manufacturing companies have committed to develop and manufacture their products in the country. According to a study by Federation of Indian Chambers of Commerce and Industry (FICCI), Embassy of India and Ernst & Young, German companies are going to invest in Indian High - Tech market.

India's strength in design is well-acknowledged around the world. However, we have been struggling in terms of IP creation. As long as our capabilities comprise mainly of low value addition activities, we will not be able to scale the heights that we aim for as a nation. Investments in R&D are crucial to enrich our intellectual capital.

Indigenisation of Defence manufacturing

There is the added need to develop innovative products that meet the exacting standards and compliance benchmarks of the aerospace and defence industry. The Indian aerospace, defence and internal security domains are growing rapidly but are still predominantly reliant on imports. Though complete self-reliance may still seems like a distant dream, we must aim our arrows toward that goal and continue to work relentlessly towards the cause. However, no industry can grow unless it can forge global partnerships and tap into the worldwide market. Self-sufficiency depends as much on Make in India as it does on strategic international alliances, FDI, transfer of technologies, and more As we strive together to realize our dream of becoming the manufacturing hub for the world, it is extremely important to look at innovative solutions that help us differentiate ourselves and address the complex problems of the modern world.

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