Electronic Manufacturing has been the backbone of China & Japan in the past few decades. Companies like Sony, Xiaomi, Hitachi, Toshiba, Panasonic, Foxconn, Gionee, Oppo/Vivo, Huawei, Lenovo have captured more than 50% of the world electronics market. And now they are setting up their manufacturing plant in India.
‘Electronic Manufacturing will share 28% of the total jobs created by Make In India’
This is a continuation of my previous article, Manufacturing to Create 100 million Jobs by 2022. In there, I’ve explained, How ‘Make In India’ aims to create 100 million jobs opportunity in the manufacturing sector and make India a manufacturing hub.
In addition to that, we have, Electronic Manufacturing –
Not to mention, Indian electronics market is one of the largest in the world in terms of consumption. And the market will grow from USD 69.6 billion in 2012 to approximately USD 400 billion by 2020. It will be largely led by an increase in demand, growing at a projected compound annual growth rate of close to 25% over the period (Source: Task Force Report). ‘Make In India’ plans to lower the imports of electronics from 65% in 2014 to 0% by 2020.
Why ‘Electronic Manufacturing’ is Important to India?
A gap of USD 296 billion b/w demand (USD 400 billion) and production (USD 104 billion) will be created by 2020. This creates a unique opportunity for companies in the ESDM (Electronic System Design & Manufacturing) sector to look at India as their next destination to serve to the domestic Indian demand as well as act as an exports hub.
Increase in Demand rates in different electronic fields:-
How ‘Make In India’ is planning to meet these demands?
With this in mind, our Government has recently approved National Policy on Electronics (NPE). Some objectives of the NPE in order to achieve a turnover of about USD 400 Billion by 2020 are:-
‘Electronic Manufacturing’ journey so far
It was 2014 when Narendra Modi Ji announced ‘Make In India’ initiative and since then electronic manufacturing has started booming in India. Here are few highlights:-
Top’Electronic Manufacturers’ who pledged their FDI to India
- Foxconn, the world’s largest contract electronics manufacturer, which is based in Taiwan, has pledged investment worth $5 billion set up R&D and electronic manufacturing facilities in India within the next five years. Foxconn will create over one million jobs opportunities in India.
- Huawei opened an R&D center in Bengaluru with an investment of US$170 million. It is also setting up a telecom hardware manufacturing plant in Chennai, which has been approved by the central government. More than 90% of jobs created by Huawei will go to Indians.
- Xiaomi began initial talks with the Andhra Pradesh government to begin manufacturing smartphones at a Foxconn-run facility in Sri City. In early August 2015, the company announced that the first manufacturing unit was operational within seven months after it was conceived. And in 2016 Xiaomi plans it’s second manufacturing plant in India & now the third manufacturing plant. A total of 20000 skilled jobs will be created by Xiaomi.
- Taiwan’s major contract manufacturer, Wistron Corp., plans to manufacture the devices at a new factory in Noida, Uttar Pradesh. It makes devices for companies such as BlackBerry, HTC, Apple, and Motorola.
- Micromax announced that it would set up three new manufacturing units in the Indian states of Rajasthan, Telangana and Andhra Pradesh at a cost of ₹3 billion (US$46 million). The plants may become operational in 2016, each employing 3,000-3,500 people.
- Vivo Mobile India began manufacturing smartphones in December 2015 at a plant in Greater Noida. It will generate employment for a workforce of 2,200 people.
These are the most compelling evidence proving that manufacturing is the Solution to Unemployment. For this reason, C2E also aims to move in the same direction.