Topic Discussed : Opportunities for Electronic Manufacturing Services (EMS) industry in India

Speaker: Manu Tiwari

Key Takeaways:

1. Electronics demand in India in increasing because of demand side factors like increased use of electronics in most segments. There is growing domestic demand for mobile phones, personal computers, consumer, medical, strategic and automotive electronics among others. Also, the prospects of exports further push the case of local manufacturing
2. Other factors like favorable Government policies, Make-in-India initiative and rising costs in China are the key factors making India as facvourable destination for manufacturing
3. Large OEMs have their manufacturing units but medium and small OEMs prefer to outsource manufacturing to Electronics Manufacturing Service (EMS) providers. The lucrativeness of the EMS is also due to factors like frequent changes in designs, advanced features, advantages offered through scale of operations by EMS providers, and cost effectiveness
4. EMS market in India is expected to grow at a CAGR of 38.1% till FY23 from the current market value of INR 56,000 Crore. Mobile phones, Telecom, and Consumer electronics and appliances were the sectors that contributed to EMS growth in the previous years and will continue to do so in the future
5. Incentives for local manufacturing, demand side support through Government procurement, import barriers via duties and favorable steps like GST that reduced complexity of operations, are pull factors for MNCs to invest in India. Growing investment and increasing local value addition levels will also see a manifold jump as more OEMs look toward localization of their products from India

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Related Keywords: Frost & Sullivan, Electronics System Design and Manufacturing, ESDM, Electronics Manufacturing Services, EMS, Original Equipment Manufacturer, OEM, Original Design Manufacturer, ODM, Automobile, CEA, Mobile, Telecom, Industrial, Manufacturing, Local production, Domestic production, localization, Value addition

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