Electronic Sector

The Indian IT Hardware and Electronics market is segmented product wise into seven broad categories namely, Consumer Electronics, Controls, Instrumentation & Industrial Electronics, Electronic Data Processing (IT Hardware), Communication & Broadcast Equipment, Strategic Electronics and Electronic Components.

Unlike the Software Industry, Indian Electronics and IT Hardware industry is not able to take the advantage of available manpower as this Industry is highly dependent on skilled human resource (viz. entrepreneurs, managers, technologists, skilled workers) who would facilitate/carry out Research & Development resulting to innovation and product diversification through technology up gradation, cost effectiveness and quality control. The inadequacy and inefficiency of infrastructure viz., roads, ports, high cost of electricity etc., is a deterring the productivity and competitiveness of the Indian Electronic manufacturing industry as the industry is generally dependent on import of raw material and components.

Lack of technology is one of the most important factors contributing to low level of competitiveness in Indian electronics and IT hardware industry. Due to low level of technical research and development, Indian industry is dependent on technical know-how of advanced countries like USA, Germany and Japan. Further in this sector, continuous innovations are leading to rapid changes in design and technology that give a competitive advantage in terms of cost, speed and quality. In the absence of economy of scales, Indian organizations find it unviable to procure and continuously upgrade the technology and machinery.

It is further noted from the survey that employment has grown in 63.3% of IT hardware and electronics firms whereas increase in casual labour is reported by 31.3% of firms. Demand growth for Indian IT hardware and electronics is reported for both domestic and export market.