Saurabh Gupta the Group CFO of Dixon Technologies says to “Economics Times” that, “there is a $10 billion opportunity in IT hardware for India. $10 billion worth of IT hardware products are imported into India. So, it is a large opportunity for import substitution and if India is able to do a good job as an industry, if you are able to generate that operating leverage and cost competitiveness, in a few years, yes, it can potentially get exported from India as well.”
He said “We had a beneficiary of five PLI schemes, mobile, IT hardware, telecom and networking products, and two on the component side, lighting and AC inverter controller boards. So, definitely it has played out well.”
Mr. Gupta also is confident that achieving a growth rate of 35-40% annually should not be a challenge over next few years.
As per him at the whole electronic manufacturing space, India’s share in the global electronic space is just 2%. But if you look at the whole government policy framework, as far as the labour pool availability and labour cost in India is concerned, we are looking at a very significant growth potential in this particular sector. The reason is increasingly, brands want to outsource more and more manufacturing and not only manufacturing, they want to deepen the the level of manufacturing and in our sense, it will be more design-led manufacturing for us and also, the government policy framework has been very supportive.
Clearly, in my view, India is sitting on a large opportunity. We have a young, working age population, low labour cost and as manufacturing in China is getting expensive day by day, and clearly we are looking for a large share in the global electronic manufacturing space.
So, India’s share is 2% and analysts have predicted that by the end of 2030, that share should eventually go to higher single digits and by 2040 that number should go to almost 20-odd percent. That number in itself can be almost $370-380 billion by 2040. China today dominates and it accounts for almost 45%. So, I feel we will increasingly keep taking more and more wallet share from China. Article Sources : ET Markets. You can read the full article here.
