In my blog of March 2, we had discussed the various "M" factors which may affect the T&M industry in India very positively.One of the factor was Manufacturing! Manufacturing-call it Strategic, EMS,ODM driven by making India more competitive,or moved by local job creations,or creating the offset as in India Government policy -it can lead to fillip in both sales of T&M as well as the automation of test systems. Now the local manufacturing requires more than a directive policy and procurement process-it requires whole new ecosystem and injection of Technology,Capital through FDI and People Development in this function.
There are at least 10 new projects under Central Government,where the procurement of large scale electronics hardware-components,subassemblies and systems will take place.The local industry can be motivated to sieze this opportunity to supply majorly thru this manufacturing.T&M can be a derivative gainer in the sense of supplying testers and systems and services to help there.Domestic demand of such hardwares is expected to be 400B$ by 2020,and progressive local value addition will be key here!
The demand drivers of these large scale projects and procurements are the Strategic Defense Projects,the Governance Projects of the various states,and the centre,NEM telecom infrastructure and Consumer/Digital Life Style products.Lifestyle products will be driven by home-security as well as the Automotive Electronics and money dispensing machines on new mCommerce platforms!Facilitating market access in these projects will be central policy of the Government.
I estimate the marginal T&M testers will be to the tune of Rs 800 Crore,as easily the projects are almost 40,000 Cr Rupees worth and 2% of that fihure should be easily earmarked for T&M.Off-Course T&M amount will be shared by majority imported T&M eventhough the main equipment for these projects can be majority indigeneous,given the incentivising/access policy.Is Indian Electronics industry in general listening to this opportunity,and more meaningfully the T&M vendors preparing with their manufacturing test solutions?
There are at least 10 new projects under Central Government,where the procurement of large scale electronics hardware-components,subassemblies and systems will take place.The local industry can be motivated to sieze this opportunity to supply majorly thru this manufacturing.T&M can be a derivative gainer in the sense of supplying testers and systems and services to help there.Domestic demand of such hardwares is expected to be 400B$ by 2020,and progressive local value addition will be key here!
The demand drivers of these large scale projects and procurements are the Strategic Defense Projects,the Governance Projects of the various states,and the centre,NEM telecom infrastructure and Consumer/Digital Life Style products.Lifestyle products will be driven by home-security as well as the Automotive Electronics and money dispensing machines on new mCommerce platforms!Facilitating market access in these projects will be central policy of the Government.
I estimate the marginal T&M testers will be to the tune of Rs 800 Crore,as easily the projects are almost 40,000 Cr Rupees worth and 2% of that fihure should be easily earmarked for T&M.Off-Course T&M amount will be shared by majority imported T&M eventhough the main equipment for these projects can be majority indigeneous,given the incentivising/access policy.Is Indian Electronics industry in general listening to this opportunity,and more meaningfully the T&M vendors preparing with their manufacturing test solutions?
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