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Identifying value drivers for electronics manufacturing in India

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Sharath Kumar
New Update

BANGALORE, INDIA: Research and Development centers are mushrooming in India and most of them represent MNCs. Are these R&D centers enough to make the Indian ESDM industry's $400 billion turnover by 2020, a reality?

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Experts who dwelt on challenges before the ESDM industry at the Bangaloreite.biz were keen that India should have a strong foot print, not only in product design, but local manufacturing as well, that can help the country save on import bills and generate local employment.

Sanjeev Keskar, chairman of India Electronics and Semiconductor Association (IESA) highlighted that the electronics market was driven mainly by top 10 products that include mobile phones, FPD TVs, netbooks, desktops and digital cameras among others, which contribute to 70.3 percent of the total market (TM) contribution, and that the top 20 products accounted to 80 percent of the TM contributions

Keskar pointed out that the semiconductor in an electronic product is around 15 to 20 percent and component manufacturing for PCBs, connectors, transformers, among others, provided a big opportunity for SMEs. All of these are apart from the booming mobile and tablet market, and set-top box market, which is is expected to grow to 200 million units in next five years.

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He stressed on increased focus on high growth areas like LED lighting, automotive electronics, telecom equipment, tablets, etc.

On the opportunities for new companies, he said that inverted duty structure, local component supplies and cost of finance were issues and added that ESDM Resource and Incubation Center were needed in every state which will be a facility to convert ideas to prototype.

Speaking at a separate session on 'Value drivers for electronics manufacturing', Prabhu Panduranga, MD at Bosch Automotive Electronics India Pvt Ltd, pointed out about increasing the presence on electronics in automotive vehicles, which was driven by need for more security and connectivity features.

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He said that mechanical pumps were becoming history. "So, the old generation of vehicles are set to be out. But still, the increase in electronic components in vehicles is not going to increase the price of vehicles as their prices are falling."

Sanjay Nayak, co-founder and CEO of Tejas Networks, stressed on the need to identify quick win areas to make best use of the market.

No doubt India has many R&D centers that are contributing for IPs. However, product development is not taking place in India. India needs to create its own ecosystem, Nayak stressed.

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