Time has come to extend manufacturing ecosystems to Tier 2 and Tier 3 cities - Mr Rajeev Singh Thakur, Additional Secretary, DPIIT
“The electronics sector is a shining example of what can be achieved through effective collaboration between industry stakeholders and the government, particularly the Ministry of Electronics. This powerful synergy ensures that policies are informed by real-world challenges, creating an environment where businesses can flourish through cooperative problem-solving” said Mr Rajeev Singh Thakur, Additional Secretary, DPIIT. He was addressing the CII Electronics Summit 2024, themed ‘Vision to Reality: Unfolding the Electronics Manufacturing Journey in India’
He also said that the time has come to expand manufacturing ecosystems beyond major cities and into Tier 2 and Tier 3 cities. By leveraging improved internet connectivity, reliable power supply, and expanding infrastructure, we can reduce congestion in metros and unlock the economic potential of smaller towns. This approach will foster inclusive growth, ensure business viability, and promote development in regions that need it most.
Addressing the summit Mr Ishtiyaque Ahmed, Programme Director, NITI Aayog said, "India’s transition into a high-income country hinge on the transformation of its manufacturing sector, which currently contributes 16–18% to GDP but employs only 11–12% of the workforce. A shift to high-value manufacturing segments such as semiconductors, advanced electronics, and renewable energy equipment is essential to enhance the sector’s global competitiveness and economic contribution."
He said that “India must focus on six core areas to boost electronics manufacturing: (1) developing a component manufacturing ecosystem, (2) addressing scale and complexity in components, (3) fostering R&D and design capabilities, (4) improving infrastructure, (5) optimizing duty structures, and (6) enhancing ease of doing business. This multi-pronged strategy will ensure sustainable growth and global competitiveness."
Mr Vinod Sharma, Chairman, CII National Committee on Electronics Manufacturing and Managing Director, Deki Electronics Ltd said “India’s electronics manufacturing journey is transitioning from enterprise-focused development to ecosystem-building. By fostering collaboration among policy makers, manufacturers, component suppliers, and material producers, we aim to create an industry capable of sustainable growth and global competitiveness over the next two decades."
He also said that "a critical gap in India’s electronics ecosystem is the lack of domestic standards. Relying on international certifications, often involving foreign evaluation processes, adds unnecessary costs and compromises our technological independence. Establishing Indian standards for components and materials will strengthen the local ecosystem and enhance global credibility."
26 November 2024
New Delhi