India’s Electronics Industry at a Turning Point, Says Dixon’s Vachani
The global electronics industry is experiencing a pivotal moment akin to the Y2K era, and India is poised to become a key manufacturing hub, said Sunil Vachani, Founder and Chairman of Dixon Technologies. Speaking at Business Standard Manthan, he highlighted India’s growing role in global electronics and component manufacturing, positioning it as a natural alternative to existing production bases.
India’s Electronics Manufacturing Potential
India consumes $140 billion worth of electronics annually, with $110 billion produced domestically. The Information and Communication Technology (ICT) sector is now the third-largest export category, expected to generate $40 billion in exports, including $20 billion from mobile phones.
Vachani emphasized the need for deeper manufacturing and value addition, comparing the electronics sector’s journey to the automobile industry’s transformation over the last four decades. Just as Maruti Suzuki’s early assembly operations led to the creation of a robust auto component ecosystem, the electronics manufacturing sector will evolve with time, he said.
Dixon’s Role in India’s Manufacturing Growth
Dixon started as an assembler of CRT televisions in 1993 and has since expanded to smartphones, IT hardware, security systems, and white-label electronics. The company, listed in 2017, recorded a 90% year-on-year growth with ₹12,192 crore revenue in FY 2022-23.
The company is set to launch display module production in October, contributing 8-10% to a mobile phone’s value, and plans to manufacture camera modules, which add 7-8% to the total cost. These expansions are expected to increase domestic value addition from 20% to 30-35% in the next few years.
Global Trade Shifts and India’s Opportunity
With the U.S. imposing tariffs on China and other nations, India has a unique opportunity to capture a share of the $60 billion mobile phone import market, $80 billion IT hardware market, and $10 billion LED television market. However, Vachani stressed the importance of reciprocal trade agreements and free trade agreements (FTAs) to maintain global competitiveness.
Confident in India’s growing role in design, manufacturing, and component production, Vachani believes the country can emerge as a global leader in electronics manufacturing while leveraging policies like Make in India and the Production-Linked Incentive (PLI) scheme.
Source: Business Standard
