NEW DELHI: Manufacturing of electronics components in India offers MSMEs “a huge opportunity to succeed”, IT Secretary S Krishnan said on Wednesday as Meity is looking at ways to boost the electronics components ecosystem in the country. Is.

Speaking at the CII MSME Growth Summit, Krishnan exhorted MSMEs to take advantage of growth opportunities, adopt technology and digital tools for expansion, and “graduate” to a larger enterprise over time.

“You enter as a start-up and try to exit within a reasonable time. So we should no longer have ‘intergenerational’ MSMEs in this country,” he said, pointing to the many opportunities. Said technology enables today.

Krishnan said India’s ambitions to transform itself into an electronics manufacturing destination are “very important” from the perspective of employment, flexibility and exports. Moreover, it ensures that quality products are available in the market for domestic consumers.

“There is a huge need for components and that component is where I think MSMEs have a huge role to play and need to come into play in a significant way,” he said.

Not only does component manufacturing give such companies a great opportunity to succeed, he said, “there is a national need to ensure their success.”

The Ministry of Electronics and IT (Meity) is looking at ways to promote greater manufacturing of electronics components in the country and is keen to encourage and enable companies of all sizes and scales in this space. .

He cited India’s success in mobile manufacturing, saying the country now produces 330 million mobile units and is a strong player in exports, a “significant” achievement compared to levels a decade ago when the country 21 crore mobile phone units were being imported. Manufacturing in only 5 crore units.

Krishnan, however, pointed out that while mobile phones, manufactured and assembled, now cater to almost all household consumption in the country, the price increase is only 18-20 percent.

“Today we have an advantage in terms of labor cost… Assembly of electronics units is very labor intensive which is good… but to continue this in India, we need to remain competitive,” he said. said.

For electronics manufacturing to dig “deep roots in India” a significant proportion of components will be required to be manufactured here.

“Our aim is to double the value addition to 35-40 per cent in the next 5 years so that we can take the component manufacturing ecosystem forward and the role of MSMEs will be crucial there,” said Krishnan. .

Industry 4.0 and artificial intelligence are also important for MSMEs, he said, adding that the adoption of new edge technologies by small enterprises will be crucial for their growth and success.

The IT Ministry is running a series of initiatives and programs that can be leveraged by MSMEs for tech infusion. It may also require the ‘retrofitting’ of many manufacturing facilities to take advantage of the AI ​​revolution and gain productivity gains from it.

He added that there is a huge opportunity for ‘retrofitting’ and this is something that needs to happen in terms of allowing MSMEs to ‘retrofit’ equipment and implement the latest digital technology. .

The application of technology and digitization is of great importance to the MSME sector, he said, enabling faster credit evaluation by financial institutions and banks, or even helping companies in their marketing efforts.

Published July 10, 2024, 13:07 I.S

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