India
Electronics Industry SWOT
|
Strengths
|
- Electronic
hardware production of US$21bn in 2008, with growth set to be driven by
emerging domestic market for electronics devices.
- Government
support and incentives for hardware manufacturing, with new IT Amendment
Bill currently under consideration by parliament.
- Growing
foreign investment with proposed investment in manufacturing facilities
in the region of INR155,000 crore.
- Abundant
availability of skilled and technically qualified manpower.
- A further
range of incentives, such as tax advantages and subsidies for
semiconductor manufacturers, which have already attracted US$7bn in
investments.
|
Weaknesses
|
- Intellectual
property rights problem and piracy.
- Consumption
of hardware is currently estimated to be about double the level of
domestic production.
- Despite the
government's ambitions, India still has not emerged as a significant
semiconductor manufacturing centre.
- Domestic
consumer electronics market dominated by foreign brands, with few Indian
brands competitive in most product categories.
|
Opportunities
|
- State and
federal level reforms to encourage more investment into the sector and
encourage domestic manufacturing.
- India
emerging as a centre for chip design services, with the market worth
about US$5bn, and embedded software.
- More than
US$18bn invested in hardware manufacturing.
- Colour TV
computers and mobile phones.
- LCD TV, with
government digitalisation policy having potential to drive spending.
|
Threats
|
- Slowdown in
global computer and consumer electronics applications markets.
- Moves to
stimulate the hardware sector having mixed results.
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|
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