Bangalore, India: February 5, 2016: The ‘Make in India’ mantra represents $400 Billion opportunity for the Indian Indian Electronic System Design and Manufacturing industry -- but there are serious challenges enroute.
This was discussed in depth at the Vision Summit 2016 of the India Electronics and Semiconductor Association (IESA), the premier trade body, representing the ESDM industry, for two days and an action constitutes of 4 components - Talent Development, Strengthen Startup Ecosystem, Industry-Academia involvement and IP Creation was chalked out.
Chief Guest and Minister of State (Independent Charge) for Commerce & Industry,Nirmala Sitharaman, said, “The industry has a fairly big challenge to meet. There is lack of balance between demand and supply of electronics in India and this is a serious concern. Electronics is the third biggest import after crude oil and gold. There are only 3,500 electronics manufacturing units and therefore the need to set up more units in India for reaching zero import. The National Electronics Policy calls for $100Billion investments in this sector, which will result in 28 Million jobs. But, between 2000 and 2014-15, we have had only $1.53 Billion coming in this sector while 100% FDI in this sector has been given.”
She added: “Manufacturing contribution to GDP is only 12% - 14%. Services sector contributes to 50% GDP but that is not creating jobs. Manufacturing contribution should be 25% by 2022. We are hopeful National Knowledge Network, National Optical Fibres, Digitization program, Broadband push, will generate more demand and employability. Startups today are looking at application based technology to facilitate the consumer. Space technology, R&D towards core Science, Physics based Science, Earth Science are the areas where India has strengths. Technology needs to come there too."
“Today, India trains around 1.5 million engineers per year, more than what the US and China jointly produces. However, 15% of the engineers who graduate, find a job immediately and hence, there is a need for a paradigm shift in the way the various technical courses are structured. It is also essential that the engineering graduates are made trade worthy through collaboration with industries and an exposure to industrial working conditions,” said Vinay Shenoy, Chairman, IESA.
The government’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. As India attempts to become a manufacturing nation, the ESDM start-up ecosystems are uniquely positioned to drive innovation and deliver path-breaking products. Start-ups also have the advantage of being able to focus on niche, cutting-edge technologies while also managing to remain extremely nimble.
M.N. Vidyashankar, President, IESA, added:“Over the last two decades, we have witnessed the growth of services space which have definitely taken the nation to a high-growth economy, taking the start-up ecosystem along with them. Now, with government's 'Make in India' agenda, we are seeing a similar transition in the ESDM landscape and the start-ups are carrying the baton of ‘Make in India’ success."
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