Telangana has continuously been at the forefront of electronics manufacturing in the country. The traditional entrepreneurial spirit of the locals, coupled with the access to skilled workforce and inherent supply chain advantages of the location have resulted in tremendous growth of the Electronics industry over the last two decades. Over time, a physical ecosystem has evolved with the Electronics and associated industries in and around Hyderabad. Additionally, the high quality of technical education and skilled graduates from engineering colleges across the state has served as a critical growth factor.
Hyderabad, currently, is marching towards establishing itself as one of the leading electronic hubs globally. It houses over 250 companies, both large and small which together employ greater than 50,000 professionals. In 2014-15 the total value of electronic products and services exports accounted for USD 250 million and this amounts to about 6% of national electronics exports.
Challenges for Component manufacturing in India
The Vision envisaged for the Telangana Electronics Policy 2016 is: Promoting Telangana as the ideal destination for Electronics Industry through creation of sustainable ecosystem, making this industry a major contributor to employment and economy in the State Based on historical analysis as well as the projections made by industry, Telangana aspires to achieve the following by 2020.
Although the Government of Telangana seeks to generate a myriad of positives through technological evolution, there have been rising ecological concerns over e-waste generation, management and disposal. Realizing the growing concern over e-waste, the Government of Telangana shall work on the following initiatives.
Vision and Goals
The Vision envisaged for the Telangana Electronics Policy 2016 is: Promoting Telangana as the ideal destination for Electronics Industry through creation of sustainable ecosystem, making this industry a major contributor to employment and economy in the State Based on historical analysis as well as the projections made by industry, Telangana aspires to achieve the following by 2020.
Telangana has continuously been at the forefront of electronics manufacturing in the country. The traditional entrepreneurial spirit of the locals, coupled with the access to skilled workforce and inherent supply chain advantages of the location have resulted in tremendous growth of the Electronics industry over the last two decades. Over time, a physical ecosystem has evolved with the Electronics and associated industries in and around Hyderabad. Additionally, the high quality of technical education and skilled graduates from engineering colleges across the state has served as a critical growth factor.
Challenges for Component manufacturing in India
Policies for promotion of electronics manufacturing have been formulated with a long term vision but their implementation has lacked the same tenacity and a long term sustained approach for promoting high value added manufacturing. A suitable policy must support large investments in manufacturing facilities for raw materials, parts, components and PCBA/EMS for electronics. This is the segment of the ESDM value chain where there is concentration of technology and requires R&D, IP creation and continuous and consistent investments if we want to create a resilient value chain in the country. This is the only way to reduce our dependence on imports and also reduce the insecurity and uncertainty which accompanies it.
A strong component manufacturing base in the country is a pre-requisite for a self-reliant ESDM sector in the country. In the recent past, the focus of policy makers is on manufacturing of electronics products irrespective of the degree of value addition. Majority of inputs such as parts, Sub-Parts, Components are allowed for import at zero or minimal duty. This policy has encouraged low value added manufacturing/assembling but simultaneously has stymied the growth of the existing component manufacturing base and FDI in the sector.
