HCL Founder Dr Ajai Chowdhry calls electronics a “meta resource”; presents massive opportunities for India
Dr Ajai Chowdhry further highlighted at TiEcon - Delhi 2022 event that startups and small businesses must focus on the accessories market, including add-ons to phones.
India is ushering in a new era in the manufacturing space. According to a NASSCOM report, amid the digitisation push, $5.5 – 6.5 billion were spent on IT manufacturing in FY21. This accounts for nearly 50 percent of the annual technology spend by Indian manufacturers.
One trend that has set the ball rolling for Industry 4.0 is the humongous opportunity in the semiconductor or electronics segment.
Dr Ajai Chowdhry, one of the six founders of IT giant HCL, called electronics a “meta resource” at the TiEcon - Delhi 2022 event.
“You can't find a single product out there that doesn't have electronics. So, it has an impact on everything,” he said, adding that Indian companies, especially startups and small businesses, must focus on the accessories market or the add-ons to the phones segment.
Giving the example of tablets, he said, “Tablets are a big opportunity in India. If you look at just education, there are 25 crore students…”
According to Rajiv Khushi, Chairman, Board of Directors at India Electronics and Semiconductor Association, the semiconductor space has thrown a massive opportunity for startups and product-driven companies. With an exponential increase in the manufacturing of consumer electronics, semiconductor consumption is pegged at around $27.3 billion currently.
Josh Foulger, Managing Director at Bharat FIH, believes that mobile phones, as a category, is a big enough space for many to jump in.
“We are now the number two manufacturer of mobile phones. It is a lot of effort coming from government policies and a lot of effort from the industry bodies to drive us in that direction,” he added.
He further added that India should focus on five areas in the manufacturing and services domain to gain a competitive advantage, including electronics manufacturing services (EMS), Original Design Manufacturer (ODM) services, component manufacturing, after-sales services, and equipment fixtures or texters.
Speaking at the event, Josh said that a smartphone comprises 1,500-2,000 components. This will enhance the Tier I and Tier II ecosystem of the country and strengthen local supply chains.
Rajiv concluded by saying that India needs to continue to build a Silicon Valley of its own (which is happening in Bengaluru), and enable the development of Indian-driven IPs. He said that developing manufacturing and design domestically will create jobs, stickiness and will protect companies from supply chain disruptions.
Edited by Kanishk Singh