New Delhi: Electronic components manufacturing in India offers MSMEs a "huge opportunity to succeed", IT Secretary S Krishnan said on Wednesday, asserting that Meity is looking at ways to stimulate the electronic components ecosystem in the country.
Speaking at the CII MSME Growth Summit, Krishnan also urged MSMEs to take advantage of growth opportunities, adopt technology and digital tools to expand and "graduate" to become a larger enterprise over time. big.
"You enter as a startup and try to exit in a reasonable time frame. So we should no longer have 'intergenerational' MSMEs in this country," he said, pointing to a number of opportunities that technology today allows.
Krishnan said India's aspirations to transform into an electronics manufacturing destination are "extremely important" from an employment, resilience and export point of view. Furthermore, he ensures that quality products are available to domestic consumers in the market.
"There is a huge need for components and I think in that need for components MSMEs have a huge role to play and they need to come into play, significantly," he said.
Not only does component manufacturing offer these companies a great opportunity to succeed, but "there is also a national need to ensure that they succeed," he said.
The Ministry of Electronics and IT (Meity) is looking at ways to promote greater manufacturing of electronic components in the country and wants to encourage and train companies of all sizes and scales in this space.
Citing the success experienced by India in mobile phone manufacturing, he said the country now produces 33 crore mobile units and has a strong export performance, a "significant" feat compared to levels a decade ago, when 21 crore units of mobile phones were imported into the country. manufacturing only 5 million units.
Krishnan, however, pointed out that while the manufactured and assembled mobile phones now supply almost the entire domestic consumption of the country, the value addition is only 18 to 20 per cent.
"Today we have an advantage in terms of labor cost... the assembly of electronic units is strongly employment oriented, which is good... but for it to remain based in India, we must remain competitive" . " he said.
For electronics manufacturing to have “deep roots in India” it would require a significant proportion of components to be made here as well.
"Our target is that the value addition doubles to 35-40 per cent in the next five years so that we can take the components manufacturing ecosystem forward and there the role of MSMEs will be significant," Krishnan said.
Industry 4.0 and Artificial Intelligence are also important for MSMEs, he said, adding that adoption of new-age technologies by smaller businesses would be crucial for them to thrive and succeed.
The IT Ministry has been running a number of initiatives and programs that MSMEs can leverage for technology infusion. Benefiting from the AI revolution and realizing productivity gains from it may also require the “retooling” of many manufacturing facilities.
"There is a huge opportunity for 're-skilling' and that is something that needs to happen across all MSMEs, as well as in terms of 're-skilling' equipment and allowing the latest digital technology to be applied, rather than completely replacing equipment." "he added. .
The application of technology and digitalization has enormous relevance for the MSME sector, as it allows for faster credit assessments by financial institutions and banks, or even helps the marketing efforts of companies.
Speaking at the CII MSME Growth Summit, Krishnan also urged MSMEs to take advantage of growth opportunities, adopt technology and digital tools to expand and "graduate" to become a larger enterprise over time. big.
"You enter as a startup and try to exit in a reasonable time frame. So we should no longer have 'intergenerational' MSMEs in this country," he said, pointing to a number of opportunities that technology today allows.
Krishnan said India's aspirations to transform into an electronics manufacturing destination are "extremely important" from an employment, resilience and export point of view. Furthermore, he ensures that quality products are available to domestic consumers in the market.
"There is a huge need for components and I think in that need for components MSMEs have a huge role to play and they need to come into play, significantly," he said.
Not only does component manufacturing offer these companies a great opportunity to succeed, but "there is also a national need to ensure that they succeed," he said.
The Ministry of Electronics and IT (Meity) is looking at ways to promote greater manufacturing of electronic components in the country and wants to encourage and train companies of all sizes and scales in this space.
Citing the success experienced by India in mobile phone manufacturing, he said the country now produces 33 crore mobile units and has a strong export performance, a "significant" feat compared to levels a decade ago, when 21 crore units of mobile phones were imported into the country. manufacturing only 5 million units.
Krishnan, however, pointed out that while the manufactured and assembled mobile phones now supply almost the entire domestic consumption of the country, the value addition is only 18 to 20 per cent.
"Today we have an advantage in terms of labor cost... the assembly of electronic units is strongly employment oriented, which is good... but for it to remain based in India, we must remain competitive" . " he said.
For electronics manufacturing to have “deep roots in India” it would require a significant proportion of components to be made here as well.
"Our target is that the value addition doubles to 35-40 per cent in the next five years so that we can take the components manufacturing ecosystem forward and there the role of MSMEs will be significant," Krishnan said.
Industry 4.0 and Artificial Intelligence are also important for MSMEs, he said, adding that adoption of new-age technologies by smaller businesses would be crucial for them to thrive and succeed.
The IT Ministry has been running a number of initiatives and programs that MSMEs can leverage for technology infusion. Benefiting from the AI revolution and realizing productivity gains from it may also require the “retooling” of many manufacturing facilities.
"There is a huge opportunity for 're-skilling' and that is something that needs to happen across all MSMEs, as well as in terms of 're-skilling' equipment and allowing the latest digital technology to be applied, rather than completely replacing equipment." "he added. .
The application of technology and digitalization has enormous relevance for the MSME sector, as it allows for faster credit assessments by financial institutions and banks, or even helps the marketing efforts of companies.
