India’s renewed thrust on local electronic manufacturing and its hunger for digitalisation is shaping the contours of another industrial sunrise. A sector which was hitherto untapped, a sector which has a stronger groundswell than even the software sector had in its infancy in India. This sector is the electronics repair sector.
Each year millions of electronic devices are being sold and purchased in India. From laptops, mobiles, tablets, to televisions, speakers and wearables, the list is getting longer and each one requires a repair and services support eco-system. The scale itself is so huge that as per a study by Manufacturer’s Association of Information Technology (MAIT), the electronic repairs market is projected to generate revenues of $ 20 billion per annum in the next four years (from 2025 onwards). It is also foreseen to be among the largest and fastest growing industries in the world.
With a slew of schemes such as PLI (for IT Hardware, Mobile phones, Semiconductors and Display units), SPECS, RoDTEP etc., promoting electronics manufacturing through incentives, this billion-dollar industry shall result in incremental tax revenue generation for the Government of India. Indians as citizens have a tendency to favour repair and maximise life of every equipment that they use. This has the potential of supporting a creative ecosystem in the hardware manufacturing space. A global repair hub in India opens up plenty of opportunities for repairers to earn income thereby generating massive tax revenue for the Government of India.
The India of today prides itself on its demographic dividend. In order to capitalise this dividend, job creation is necessary. Millions of our unemployed youth need to have jobs. This is where the electronics repair sector is particularly attractive. The sector has the potential of qualifying as one of the emerging sectors for employment growth in India. MAIT in its study has pointed out that if requisite initiatives are provided for promoting the electronics repair sector, the country is expected to witness a generation of five million direct job opportunities in the next four years from now. Moreover, in the present scenario of the COVID-19 pandemic which has resulted in all round chaos in the economy, forced businesses to lay off employees and left millions of Indians jobless. This sector is expected to be the next sunrise sector, a boon, which shall open up new job opportunities thereby improving the rate of employment in the country.
The repair of in-service electronic equipment will most certainly enhance its life thereby reducing the amount of e-waste which would have been generated had the electronic gadget been discarded as waste. A lot of repairs are already happening within India for locally available devices, it is the existing custom processes in place, the extant logistic friction and the long TAT for repair that deters major companies from outsourcing major repairs of electronic equipment to India. India has a distinct advantage over China and Europe over cost of labour, it also has world class repair infrastructure owned by both Indian and foreign companies already located within India. All that it needs for the big orders to start flowing is an enabling Electronic Repair Service Organisation (ERSO) Policy. A policy which bridges the existing gap by:
While manufacturing relies on proportionate imports, the repair industry is a highly labour industry and has excellent profit margins. As repair grows in India so would the consequent demand for electronic components. With robust orders, Indian electronic repair companies would command greater leverage in sourcing of these components from abroad. It would also result in creation of a strategic component stock within the country, something that the country urgently needs in times of global supply chain disruption. Slowly but steadily, component manufacturing would also shift under the weight of heightened demand.
The enablement that is required by the country for making India an electronics repair hub is an effective ERSO policy. A policy that incentivises repair of foreign equipment & enables a wholesome regulatory cum logistic solution. A system where logistic and regulatory timelines are kept within a tight control and there is a mechanism to resolve Industry issues in a responsive manner. If the Prime Minister’s vision of making India a $5 trillion economy is to be realised, India would certainly need to see the rise of the electronics repair industry.
(The writer is President, MAIT)
Each year millions of electronic devices are being sold and purchased in India. From laptops, mobiles, tablets, to televisions, speakers and wearables, the list is getting longer and each one requires a repair and services support eco-system. The scale itself is so huge that as per a study by Manufacturer’s Association of Information Technology (MAIT), the electronic repairs market is projected to generate revenues of $ 20 billion per annum in the next four years (from 2025 onwards). It is also foreseen to be among the largest and fastest growing industries in the world.
With a slew of schemes such as PLI (for IT Hardware, Mobile phones, Semiconductors and Display units), SPECS, RoDTEP etc., promoting electronics manufacturing through incentives, this billion-dollar industry shall result in incremental tax revenue generation for the Government of India. Indians as citizens have a tendency to favour repair and maximise life of every equipment that they use. This has the potential of supporting a creative ecosystem in the hardware manufacturing space. A global repair hub in India opens up plenty of opportunities for repairers to earn income thereby generating massive tax revenue for the Government of India.
The India of today prides itself on its demographic dividend. In order to capitalise this dividend, job creation is necessary. Millions of our unemployed youth need to have jobs. This is where the electronics repair sector is particularly attractive. The sector has the potential of qualifying as one of the emerging sectors for employment growth in India. MAIT in its study has pointed out that if requisite initiatives are provided for promoting the electronics repair sector, the country is expected to witness a generation of five million direct job opportunities in the next four years from now. Moreover, in the present scenario of the COVID-19 pandemic which has resulted in all round chaos in the economy, forced businesses to lay off employees and left millions of Indians jobless. This sector is expected to be the next sunrise sector, a boon, which shall open up new job opportunities thereby improving the rate of employment in the country.
The repair of in-service electronic equipment will most certainly enhance its life thereby reducing the amount of e-waste which would have been generated had the electronic gadget been discarded as waste. A lot of repairs are already happening within India for locally available devices, it is the existing custom processes in place, the extant logistic friction and the long TAT for repair that deters major companies from outsourcing major repairs of electronic equipment to India. India has a distinct advantage over China and Europe over cost of labour, it also has world class repair infrastructure owned by both Indian and foreign companies already located within India. All that it needs for the big orders to start flowing is an enabling Electronic Repair Service Organisation (ERSO) Policy. A policy which bridges the existing gap by:
While manufacturing relies on proportionate imports, the repair industry is a highly labour industry and has excellent profit margins. As repair grows in India so would the consequent demand for electronic components. With robust orders, Indian electronic repair companies would command greater leverage in sourcing of these components from abroad. It would also result in creation of a strategic component stock within the country, something that the country urgently needs in times of global supply chain disruption. Slowly but steadily, component manufacturing would also shift under the weight of heightened demand.
The enablement that is required by the country for making India an electronics repair hub is an effective ERSO policy. A policy that incentivises repair of foreign equipment & enables a wholesome regulatory cum logistic solution. A system where logistic and regulatory timelines are kept within a tight control and there is a mechanism to resolve Industry issues in a responsive manner. If the Prime Minister’s vision of making India a $5 trillion economy is to be realised, India would certainly need to see the rise of the electronics repair industry.
(The writer is President, MAIT)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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