Indian electronics manufacturers expect massive growth within the next 3 to 4 years
20. January 2022With the covid crisis abating, the Indian government sees a unique opportunity to gain additional market share in the production of electronic equipment from other countries. “Every effort will be made to consolidate its position as a manufacturing hub in the electronics sector as well as to attract well-known companies to India,” Rajeev Chandrasekhar, minister for electronics and IT told the Economic Times of India. Moreover, India should continue to present itself as an innovative nation rather than just a low-cost manufacturing hub, the minister said while unveiling a report on strengthening Indian electronics exports and participation in global supply chains. A majority of all electronic products require BIS certifications in order to be imported into and used in India.
According to the minister, India has strengths in electronics and software development along with manufacturing expertise that few countries can boast of. The Secretary to the Minister, Ajay Sawheny, said that despite the sometimes severe impact of the pandemic, Indian industry was able to manufacture products worth 75 billion US dollars. Further, he said, there is an ambitious target to expand the amount to 250 billion within five years, which is a combined annual growth rate of 27 per cent. To achieve this, the ministry proposes various measures in its report. For example, production is to be expanded further and oriented more towards exports. The government is expected to reduce import duties on inputs and remove bureaucratic hurdles.
According to Chandrasekhar, India’s goal of becoming a globally important location for electronics products is currently more tangible than ever before. According to the minister’s rough estimates, the four big companies, Dell, Samsung, Apple and HP, generate around 650 billion US dollars annually. He sees no reason why at least 10 or 20 per cent of these products could not come from India. This would also increase the electronics sector’s contribution to India’s GDP from the current 3 per cent.
Electronic components or finished electronic devices need BIS certification to import them into India or put them on the market. Depending on the product, a distinction is made between BIS-ISI or BIS-CRS certification.
Since 2012, the BIS has been gradually expanding the certification catalog and continuously adding additional goods. BIS certification mandatory for many electronic products for industrial and consumer uses. Factory inspections are also required for some products.
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