In today’s world, technology plays a crucial role in molding a nation’s economy. Software’s low barrier to entry is alluring, but the backbone of technology lies in the manufacturing of electronic hardware. As a rapidly growing economy, India has enormous potential to establish itself as a leader in electronic hardware manufacturing as it did in the IT industry.
The development of hardware has evolved in the last decade.
The exponential growth and innovation seen in the semiconductor industry in the last decade with IoT (Internet of Things) devices like wearables, handhelds, sensors, and the cloud becoming omnipresent and connected have enabled electronics hardware to behave more like software. Electronics hardware, IoT hardware is now compact, economic to build, more flexible, and easier to manage.
Key drivers for making India’s electronic Industry as the fastest growing in the world.
1. Economic growth
With the deployment of the latest automation technologies across various domains and the consistent growth in India’s GDP (Gross Domestic Product), and the nation’s economy, the demand is influencing consumers.
2. Rapid urbanization and income growth
Increasing urbanization and rising incomes have made goods more accessible, which has raised the demand for more electronic devices.
3. Government initiatives for electronic hardware
The Indian government has introduced various initiatives like Make in India, Smart Cities, Digital India, etc. The incentives coming from these initiatives are anticipated to support domestic electronics production and advance anchor businesses within India’s main electronics clusters & India’s electronics manufacturing ecosystem.
The three schemes driving the growth are
- Production Linked Incentives (PLI)
Production Linked Incentive Scheme (PLI Scheme) is a sum of Indian government incentives that are linked directly with manufacturing performance. Under this scheme, the government is encouraging foreign and domestic companies to start production in India. It’s a key step to realizing the ambitious dream of “Atma Nirbhar Bharat’ and creating thousands of jobs. Making India a global manufacturing hub.
- Scheme for the Promotion of Manufacturing of Components and Semiconductors (SPECS)
The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) will help offset the disability for domestic manufacturing of electronic components and semiconductors in order to strengthen the electronics manufacturing ecosystem in the country and prominently in electronics hardware.
- Modified Electronics Manufacturing Clusters (EMC 2.0)
This scheme will support the creation of world-class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds / Plug and Play facilities for attracting major global electronics manufacturers along with their supply chain to set up units in the country.
4. Evolving technology and innovation:
Shorter electronic equipment life cycles result from continual technological advances and newer products. High-end smartphones and smart wearables are increasingly popular due to the need for quick and efficient data. The introduction of robotics and analytics with technologies like IoT, AI (Artificial Intelligence), etc. in the industrial and strategic electronics sectors have all contributed to the development and demand for various electronic products. Hardware for IoT has seen an increase in demand due to this rapid evolution of technology.
Electronic hardware as a moat.
Smartphones, wearables, small sensors, home automation, and connected vehicles are frequently collecting data around us, merging the physical and digital worlds. When a service that utilizes intelligence to solve a tangible issue in the real world is the actual product, then the hardware becomes a valuable economic moat.
Hardware serves as the foundation for accessing the platform, as once a consumer acquires the hardware, they become integrated with the software. The integration of hardware with Software-as-a-Service (SaaS) and the Internet of Things (IoT) allows for the leveraging of data to create personalized experiences and deliver value to consumers.
For India’s development and economy, electronic device manufacturing is a moat. Here is why…
- Huge Market Potential
- Cost-effective Production
- Skilled Workforce
- Growing Technology Landscape
- Strategic Location
India is home to a thriving technology landscape, with numerous startups and technology companies working to bring innovative products to the market. This helps to create a supportive ecosystem for electronic hardware manufacturing and contributes to the growth of the sector.
With service offerings spanning the design and manufacturing of electronics, mechatronics, mechanical, and electrical equipment, Napino Digital Solutions is India’s top electronics manufacturing company for the electronic hardware industry where you will get support in embedded designs, DFM (Design for Manufacturing), hardware manufacturing, etc.
Authors
Saakshi Nagpal, Head of Marketing, Napino Digital Solutions
Thakur Saurabh Singh, Head – Service Operations, Napino Digital Solutions
