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Source-This post on Electronics Manufacturing Revolution has been created based on the article “Elevating India’s capital goods for a global electronics revolution” published in “The Hindu” on 20 July 2024.
UPSC Syllabus-GS Paper-3- Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth.
Context– India’s electronics production has reached approximately $115 billion in FY24, growing nearly fourfold over the past decade and projected to multiply fivefold in the next five years.
To secure its position in global markets, capital goods play a crucial role. Like the steam engine in the Industrial Revolution, advanced capital goods are essential for modern manufacturing, enabling efficient production of high-quality electronics at scale.
What steps can be taken to boost India’s capital goods for a global electronics revolution?
1) Bolstering Manufacturing Infrastructure-
A) Establishing a dedicated center with a budget of at least ₹1,000 crore for capital goods innovation at the Central Manufacturing Technology Institute (CMTI) is needed. By collaborating with industry and academia, CMTI can lead innovation efforts, improve production efficiency, and enhance the competitiveness of Indian manufacturers.
B) Prioritize the development and acquisition of advanced manufacturing technologies with dedicated funds for capital goods, including second-hand equipment.
C) Embrace eco-friendly technologies and sustainable manufacturing practices to enhance global competitiveness.
2) Fostering R & D-
A) Promoting a robust R&D ecosystem will help develop indigenous technologies that meet global standards and set new benchmarks in quality and efficiency.
B) Invest in education and training to equip the workforce with essential technical and soft skills for innovation and problem-solving.
C) Promote strong collaboration between industry and academia to align research with industry needs and develop breakthrough technologies.
Read More- National policy on Electronics 2019
3) Government Policies and Programmes-
A) Government policies should incentivize R&D, improve ease of doing business, and maintain a stable regulatory environment to support growth in the capital-goods industry.
B) Implement government programs to attract skilled diaspora and foreign experts.
4)Leveraging Digital Technology-
A) Integrate digital technologies such as AI, IoT, and big data to optimize manufacturing processes for efficiency and cost-effectiveness.
B) Address technology and skill gaps in the electronics sector through joint ventures with global firms for skills and technology transfer.
C) Create a plan to move from essential equipment to cutting-edge technologies, with the goal of positioning India as a hub for advanced capital goods.
5) Lower Cost of Capital -Lowering the cost of capital can help Indian manufacturers invest more in technology and innovation, enhancing their global competitiveness.
Question for practice
How can India enhance its capital goods sector to lead in the global electronics revolution?
