Electronics Manufacturers in India: India’s changes to its economic policies in the early 1990s have boosted the attractiveness of its electronics manufacturing industry. These significant levels of changes to the previously existing tariff structures and manufacturing related regulations have encouraged growth and world interest in India’s electronics manufacturing capabilities.
India’s government had neglected this industry because of its small size and negligible export revenues, causing it to post a combined output of only $200 million annually; but no longer. The government now recognizes the importance of manufacturing electronics, and has created many incentives to boost this industry. For instance, India’s government now offers a wide range of tax incentives that allow partial or total relief from taxation for a stipulated period of time. Electronics manufactures may now import raw materials and capital equipment such as multi-spindle CNC drilling machines, electrical testers, and other machines tax-free.
Indian electronics companies, in the past few years, have also grown by increasing market share, improving customer service, exporting products, reducing operating costs, and enhancing manufacturing capabilities. Most of the domestic electronics manufactures have adopted western business models and strategies. Electronics manufactures in India are also less dependent on government orders due to foreign investments. They now compete for value-added products in international markets.
India’s electronics manufacturing industry continues its steady growth even in the midst of the world’s economic uncertainty, accelerated inflation in China and India, oil prices, and the health of the US economy. This growth in the electronics manufacturing industry is due to improvements in infrastructure capabilities, explosive domestic demand for electronics, and increasing opportunities within defense, automotive, industrial, and communications markets.
Last updated: December 12th, 2013
