How does the electrical and electronic sector contribute to the country’s economy?

The electrical and electronic manufacturing industry One The fastest growing industry in the world. We continue to transform our lives, businesses and economies with innovative and immersive products that touch every aspect of human life. Given the technological innovations and paradigm shifts in everyday life that have taken place around the world, the future will be very different from the present. In the process, it contributes significantly to economic growth.

Due to constant research and development in this field, new innovations pave the way for product improvements and field improvements. According to a recent vision document prepared by the Ministry of Electronics and Information Technology (MeitY), India’s electronics manufacturing industry has grown from $37.1 billion in 2015-16 to $74.7 billion in 2020-21. grew to According to the report, if certain product segments, including consumer electronics, benefit from incentives and policy measures, India will generate more than $300 billion in electronics manufacturing and exports by 2025 to 2026. can be reached.

The Indian electrical and electronics market is constantly expanding as traditional products are replaced by smart products. Reports and forecasts by government agencies and other market researchers validate this growth trajectory with optimistic and relevant data. With per capita disposable income and consumer spending doubling over the past few years, India has emerged as one of the world’s largest electronic product markets. India also ranks among the top three global economies in terms of digital consumer numbers, with the digital economy expected to surpass her $1 trillion by 2025.

trend of Home appliance segment

As for the consumer electronics segment in India, the market size is 9.5 billion in 2020-22 and is expected to reach $124.94 billion by 2030, with a CAGR of 6.5% from 2022-2030. increase. By 2025 he will be the fifth largest in the world. Emerging trends in the consumer electronics segment such as energy efficiency, affordability, immersive technology, and interconnectivity are driving the consumer electronics market. Smart His devices are getting more and more attention. Developments such as the Internet of Things, 5G connectivity, artificial intelligence, and the existence of products in parallel worlds such as the Metaverse have created more opportunities and scope for the future of this sector. In addition, IoT-enabled products have brought the comfort of seamless home monitoring and control to the home. Appliance via mobile application.

Government policies to support the sector

According to the National Policy on Electronics (NPE) 2019, India targets $400 billion in electronic production by 2025. to the economy. Over the last few years, the government has launched several policies to subsidize and encourage domestic electronics manufacturing. These policies include the Product Linked Incentive Scheme (PLI) and the Electronic Components and Semiconductors Manufacturing Acceleration Scheme (SPECS), in addition to the NPE, which sets a vision to make India a global hub for Electronics Systems Design and Manufacturing (ESDM). It is included. These policy measures have been continually improved and have contributed to a significant increase in electronics manufacturing within India.

Underpinned by these policies, we are on the path to localization at a rapid stage, achieving electronics self-sufficiency, reducing our dependence on imports, and revitalizing our domestic economy. At the same time, there is a growing focus on Indian brands and products designed by indigenous peoples. It is very welcome that the Indian government is giving high priority to the manufacturing of electronic hardware. This is because it is a key pillar of the Make in India, Digital India and Startup India programs. Building a vibrant electronics manufacturing ecosystem is also key to ‘Making India for the world’.

Policy support for electronics manufacturing and skills development initiatives is a well-crafted growth driver. There are several other important factors in this growth. The largest and most diverse consumer base, industrial use of Internet of Things (IoT) technologies, rising FDI flows, the third largest start-up system, and a robust R&D ecosystem also contribute further to economic growth. . With the application of the latest technology through focused research and the necessary support from the government in implementing policies, India will soon become one of the world leaders in electronic and electrical manufacturing and a major contributor to the economy. I can.

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The above views are those of the author.

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