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SAMPLE INDIA'S ELECTRONICS ENVIRONMENT

Read about the opportunities for you to get access into the Indian market.

 
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Strong Market Sectors

Indian GDP growth has been fueled largely by the success of the IT sectors, including call centres, software development, R&D and hardware design services. As the country generates more income, general wealth of the population increases, particularly with the rise of the middle classes. As wealth increases, more disposable income is spent on luxury goods and services, many of which historically have not been made in India, creating a boom in imports. Electronics imports for FY19 reached a record US$55.6 bill, against a total demand of around US$100 billion.


Forecasts for domestic market demand vary between US$200 billion and US$400 billion by 2025, although the lower figure seems to be more reasonable at this time

  Click here to download our latest white paper on India's strongest market sectors for 2020-2021. 

 
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Impacts of COVID-19 

Assessing the impacts of Covid-19 and comparing country by country is difficult due to differences in the integrity of reporting and methods used, so this information should be seen only as a rough guide and certainly not conclusive. The economic impacts are incredibly difficult to predict, other than giving short term soundbite headlines, such as the peaking of unemployment at 23.5% in April, falling to 14.73% in May, and further reducing to 10.07% in June even as lock-down continued (Centre for Monitoring Indian Economic). The Economic Times reports US$266 billion has been set aside by the Government for “rescue spending”, supported by the Reserve Bank of India “slashing interest rates” by 1.15%, with further cuts likely. From a pole of 36 economists, 30 considered it likely that GDP would gradually recover to pre-Covid 19 levels over the next 12 to 24 months. (The Economic Times). In short, the country is in the same situation as the rest of the world in being able to predict the future, but more comparable to more developed regions in terms of its ability to recover, with a strong underlying economy and relatively good credit rating: Moody's Baa3; S&P BBB Stable; Fitch BBB - Stable. 

Click here to download our latest white paper on Impacts of COVID-19.

 
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Economic Policies & Subsidies

Many overlapping industrial and economic development policies exist across a range of Ministries at the local and national levels. A review has been conducted of a number of policies, not intending to be a definitive list, but is intended to provide an indicative picture of the level of Government support for the focus industries and supporting industries.

Full paper available only to The Honeycomb Global Electronics Hub Gold, Silver and Bronze members. Click here to view membership packages.

 

Foreign Trade Policy 051217

National Manufacturing Policy 2011

Modified Incentives Package Scheme (M-SIPS) 2012

Electronics Manufacturing Cluster Scheme (EMC) 2012

Make in India Policy (2016)

National Policy on Electronics (2012)

Generation Based Incentives (2013)

Integrated Power Development Scheme (2014)

National IT Policy (2012)

National Offshore Wind Energy Policy (2015)

National Policy on Bio-fuels

Schemes for Bio-gas Power Projects (2010)

Schemes for Biomass Power Projects

Schemes for Small Hydro Power Projects

Schemes for Solar Power Plants (2014)

Schemes for Wind Power Projects (2017)

Vision 2022 for the Indian Electric Machinery Equipment Industry (2013)

Revised Draft IoT Policy 

Smart City Mission (2015)

National Cyber Security Policy (2013)

North East Industrial Development Scheme NEIDS (2018)

Transport Subsidy Scheme

Industrial Investment Policy (2014) - Specific to the State of Assam

 
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Electronics Manufacturing Clusters

Indian tech park policies can be traced back to the 1970’s with a focus on software and business process outsourcing. The policy was hugely successful and has been a key driver of India’s leap on to the international business stage. The move towards repeating the same success in electronics hardware was an obvious one, but it has been a difficult journey.


At the heart of the Indian push to develop the electronics hardware industry is the development of electronics tech parks and clusters. The pressure and support have been on for some years, but originally the focus seemed to be more on the development of component manufacturing, particularly silicon, rather than assembly.

Full paper available only to The Honeycomb Global Electronics Hub Gold, Silver and Bronze members. Click here to view membership packages.

 
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India's Focus on Energy & Power

India’s power sector is one of the most diversified in the world. Conventional sources of power generation include coal, lignite, natural gas, hydro and nuclear power, and non-conventional viable sources include wind, solar, agricultural and domestic waste. The total installed capacity of power in India was 375 GWh in 2020. The Government’s present goal is to generate 2 trillion kWh of energy by 2019.

Full paper available only to The Honeycomb Global Electronics Hub Gold, Silver and Bronze members. Click here to view membership packages.

 
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India's Focus on IoT & ITES

Within India, the IoT market is expected to grow to $15 Billion by 2020. The revenue is expected to be mostly driven by industrial applications, with 36% coming from Telecom, 29% from Electronics and 23% of IoT from Oil & Utilities. Telecoms are a major area of growth and as a key enabler of IoT and IIoT technologies in India. Nick Gliddon, Director at Vodafone Business Services says that for Vodafone, the Internet of Things is one of the fastest growing segments of their enterprise business in India.

Full paper available only to The Honeycomb Global Electronics Hub Gold, Silver and Bronze members. Click here to view membership packages.