In the present environment in India, there is a scope for starting and creating a sustainable and profitable electronic components and products company. With many industries worldwide seeking alternatives to China, India has emerged as a viable option. Dr Girish Vaze, MD and Chairman of Elcom International, believes that it is the right time for anyone to establish a new product line in India, thanks to the abundant opportunities and resources available in the country.
India is well-positioned to become a global hub for electronics manufacturing. As companies look to diversify their supply chains and reduce dependency on a single region, they are turning their attention to India. The country offers a favorable business environment and a rich pool of resources for design, development, and manufacturing. Dr Vaze's insights echo this sentiment, highlighting the vast opportunities awaiting those willing to invest in the Indian electronics market.
The Indian government recognises the immense potential of electronics manufacturing and has taken proactive measures to attract investors. One such initiative is the SPECS (formerly known as MSIPS) scheme. Under this scheme, the central government offers substantial incentives to manufacturers. Notably, a 25% capital investment subsidy is provided to the manufacturing sector, serving as a significant advantage for businesses investing in electronics manufacturing in India. In addition to this number of products are also covered under the PLI Scheme. So, instead of just importing and white labeling entrepreneurs should involve themselves in getting deeper into the design, development and manufacture of products and services which would come along with them.
In addition to the central government's efforts, several state governments have implemented their own incentive policies to further stimulate electronics manufacturing. These policies include the Electronics Policy, Package Incentive Policy 2019, credit-linked Capital Subsidy Scheme, Interest Discount Scheme, and the recently launched Electric Vehicle Policy Scheme. These state-level initiatives provide additional incentives and support, creating an encouraging environment for electronics manufacturers to thrive.
The combination of central and state-level incentives has created a favourable environment for electronics manufacturing in India. These policies are designed to promote domestic manufacturing, localize electronics production, attract foreign direct investment, and boost exports. By implementing these measures, the government aims to build a robust electronics manufacturing infrastructure in the country.
However, it is important to acknowledge the challenges faced by electronics manufacturers in India. One of the significant obstacles is the need for a skilled labour force. To sustain growth in the sector, there is a pressing need to bridge the skill gap. Improving infrastructure is another critical aspect of creating a conducive environment for electronics manufacturing. Reliable power supply, efficient logistics, and well-connected transportation networks are vital for smooth operations. Investments in infrastructure development will not only support the existing manufacturing units but also attract new investments in the sector.
Streamlining regulatory processes is equally important. Simplifying and harmonizing regulations will reduce bureaucratic hurdles and make it easier for businesses to operate in the electronics manufacturing sector. By creating a transparent and predictable regulatory framework, India can attract more investments and facilitate business growth.
In conclusion, India is on the path to establishing a sustainable and profitable electronics manufacturing infrastructure. With abundant opportunities, a favorable business environment, and supportive government incentives, the country is poised to become a global leader in the industry. Dr Girish Vaze's insights shed light on the immense potential and the right timing to invest in electronics manufacturing in India.
However, to ensure long-term success, challenges such as the skill gap and infrastructure limitations need to be addressed. With the right direction and continued efforts, India has the potential to become a global powerhouse in electronics manufacturing. This growth will not only create employment opportunities but also contribute significantly to the country's economic development.
As a senior figure in the electronics manufacturing industry, Dr Girish Vaze urges businesses to seize the opportunities available in India. With the support of the government, the country is ready to become a sustainable and profitable destination for electronics manufacturing. It is time for both domestic and international players to explore the vast potential and contribute to India's journey towards becoming a global leader in the electronics industry.