The industry needs a robust supply chain for increased value addition and entrepreneurship, thus making Indian electronics manufacturing globally competitive.
Considering the upward trajectory of India’s electronics manufacturing industry, Bhupinder Singh, CEO, Messe Muenchen India in an exclusive interview with ELE Times Sub Editor Mayank Vashisht, explains how India has gained quite a lot of prominence in the ESDM sector and how electronica India and productronica India is on a perpetual roll to contribute immensely in the electronics industry landscape of the country. In our conversation, Bhupinder also reflected upon the relevance of the sheer efforts that the government of India is making with the introduction of schemes like ‘atmanirbharbharat’ and ‘make in India’ and how this industry can leverage global opportunities by developing a thriving domestic supply chain through trade fairs of international standards such as electronica India and productronica India 2022. Excerpts:
ELE Times: electronica India and productronica India have gained quite a lot of prominence setting new precedence every year in the ESDM industry. How do you keep up with the changing market trends?
Our deep connections with the electronics ecosystem through our advisory boards, industry associations and other stakeholders having in-depth knowledge of the latest trends, combined with the international character of the electronica and productronica trade fairs (in Munich and China) ensure that every year our events in India are more closely aligned with the Indian industry’s interests. When you participate in our shows either as a buyer or an exhibitor, you are not only building your own business but weaving your interests into the larger industry landscape of the country amidst the presence of thought leaders and decision-makers at our exhibitions and conferences. Our shows are supported by the Ministry of Electronics and Information Technology (MeitY) as well as leading industry associations such as the Electronic Industries Association of India (ELCINA), India Cellular and Electronics Association (ICEA), India Electronics & Semiconductor Association (IESA), and Indian PCB Circuit Association (IPCA). These partnerships help us address the complete electronics value chain.
ELE Times: How will you trace back electronica and productronica India’s contribution to India’s electronics industry landscape?
Electronics manufacturing in India has grown considerably over the last decade. It is one of the fastest-growing industries in India and is likely to reach $300 billion by 2025-26. electronica India and productronica India have been close partners in the electronics industry since their inception more than 20 years ago. We have strong participation from Indian companies as well as a wider global reach. While our exhibitions and our focussed matchmaking platform- buyer-seller forum help the industry unlock actual business opportunities, our specially curated conferences help the industry discuss relevant topics, address the challenges faced and explore possible solutions for the industry growth. We empower the Indian industry to build stronger networks for a more robust supply chain. Through our deep connections with the electronics ecosystem in India and global connections, we help the Indian ESDM ecosystem to realise its ambitious growth targets.
ELE Times: With the serious emphasis on schemes like ‘Make in India’ and ‘atmanirbharbharat’ and the sheer efforts made by the government of India with respect to making the country an electronics epicentre of the world, how do you see the industry shaping up in India? Is the aspiration farfetched, from your standpoint? How are you contributing to making India ‘atmanirbhar’?
The Government of India has shown the right intent to reduce dependency on imports and make India self-reliant by implementing schemes such as the NPE 2019, PLI for large-scale electronics manufacturing, SPECS, EMC 2.0 etc. Each of these schemes has been judiciously created to boost large-scale production, manufacturing clusters, and a robust supply chain ecosystem in the country. However, India still has a long road ahead. If India aims to become a global epicentre for electronics manufacturing, it will require attractive incentives for global companies to set up their base here. Though the financial incentives are encouraging, India suffers from land acquisition complications, lack of local component ecosystem, supply chain challenges, high cost of power supply and logistics, etc. The lack of world-class semiconductor fab units in the country is another major challenge. We will be delving deep into these topics through the ‘India Semiconductor Conclave’ at electronica India and productronica India 2022.
ELE Times: How do you see the growth of the Indian Electronics Industry in the last five years?
India has been one of the front runners amongst all the emerging nations from an economic development standpoint. A major credit of India’s upward trend in GDP growth can be attributed to the electronics sector. This growth is primarily driven by the increasing demand and consumption of electronic products. Electronics manufacturing in India has grown considerably over the last few years. This can be seen in increased mobile phone exports by 75% from the last fiscal. Also, domestic manufacturing of electronic products almost doubled from $37.1 billion in 2015-16 to $74.7 billion in 2020-21. India is expected to become a major semiconductor manufacturing nation in the next 5-6 years. We are moving in the right direction to realize this decades-old dream.
ELE Times: Please highlight the challenges you had to muddle through post-COVID, and how the industry sentiment is, and scenario is changing.
The pandemic put forth a serious challenge to our industry but gave us the opportunity to emerge stronger with a clear purpose and a stronger vision for growth. Post Covid-19 we have worked hard to establish more stringent safety and hygiene protocols in all our physical spaces, including exhibition halls, lounges, offices, etc. While we explored the virtual exhibition route to stay in touch with our buyer and supplier communities at the height of the pandemic, we have emerged with a deeper commitment to our original mission of enabling meaningful handshakes and unlocking business opportunities. Thus, we are now noticing increased enthusiasm for our shows from exhibitors and visitors as they have realised the value of in-person face-to-face meetings. We are already registering higher footfalls at our shows and are excited about delivering more value at our upcoming shows.
ELE Times: Electronic Industry landscape is changing fast in India. Manufacturing and exports are the buzz word these days. Considering the fact, what new shape you are going to give to electronica India and productronica India exhibition in the time to come.
In 2012-13, India’s share in global electronics production was 1.3 percent and in 2020, it only represented 3.6 percent. Though the total electronics market in India in 2019-20 was around $120 billion, the domestic manufacturing value addition was only 15 to 20 percent. At this rate, even if we reach $300 billion worth of electronics manufacturing in 2026, our domestic manufacturing value addition would only be $45-60 billion. In a value chain of any product, components such as semiconductors, displays, and batteries hold 40 percent value. We do not have any component manufacturing ecosystem, due to which we import more than 90 percent of components and miss out on the 40 percent value. This is a major challenge and needs to be addressed urgently. To deliberate on this issue and find out possible solutions, we are introducing India Semiconductor Conclave at electronica India and productronica India 2022. The conclave would comprise knowledge-rich conferences. We are also accelerating the growth of the start-ups by providing them access to technology and market in our trade fairs and are working on enabling funding and mentorship to them, which are most critical for their success.
ELE Times: Research and development are perhaps the most important and significant factors considering the innovation of any technology, still, it comes at the bottom of the due recognition index in India. Do you have any future plans to encourage the participation of researchers in your show from India?
India has always been strong on the design front, be it semiconductor design or system/product design. In fact, there is no chip in the world today that doesn’t touch India and the same holds true for almost all electronics systems/products. Design Linked Incentives (DLI) is a very important scheme by Govt. of India to further encourage innovation in the country. India’s electronics manufacturing industry is leveraging this design expertise and traditional products are making way for smarter and innovative ones. At electronica India and productronica India, we give utmost importance to innovation and R&D. We have a strong technology profile which is evident from the participation of R&D experts and global leaders in the ESDM sector, who develop cutting-edge technologies and provide innovative solutions for real-world problems. Our conferences, such as India PCB Tech and CEO Forum, see policymakers, manufacturers, as well as various stakeholders, exchange valuable information on market and technology trends, technical skills, and policies, to boost the success and growth of the electronics sector.
ELE Times: What is the central thought behind the amalgamation of different verticals circling the electronics and production landscape under one roof?
Electronic products, with their innovative and immersive features, touch every aspect of human lives, businesses, and economies. There is an ever-increasing demand for next-generation, cost-effective products and this is growing exponentially with the rising income levels and higher internet penetration. In the process, many technological innovations take place. To realize this vision, the industry needs a robust supply chain for increased value addition and entrepreneurship, thus making Indian electronics manufacturing globally competitive.
electronica India 2022 is co-located with productronica India 2022, IPCA Expo, MatDispens India, and Smart Cards Expo. electronica India focuses on electronic components, systems, applications, and solutions; productronica India on electronics manufacturing and production solutions; IPCA on PCB and its assembly; MatDispens on bonding solutions such as adhesives, sealants, and related dispensing equipment for industries; and Smart Cards Expo on smart card technology and applications. Together these exhibitions address the entire electronics value chain, contribute to its growth, unlock business opportunities and collaborations, and thereby offer solutions to real-world problems. We look forward to seeing you at the electronica India and productronica India 2022 to be held at the India Expo Mart, Greater Noida on 21-23 September 2022.
Mayank Vashisht | Sub Editor | ELE Times