manufacturing: Not just manufacturing, electronics repair is a $20 billion opportunity, create 5 million jobs

India’s renewed focus on local electronics production and its hunger for digitalization are shaping the contours of another industrial sunrise. A sector that has not been used before, a sector that has stronger growth than even the software sector in India. This sector is the electronics repair sector.

Millions of electronic devices are sold and bought in India every year. From laptops, mobile phones, tablets to TVs, speakers and wearables, the list is getting longer, and each one needs repairs and an ecosystem to support services. The scale itself is so large that, according to a study by the Association of Information Technology Manufacturers (MAIT), the electronic repair market is projected to generate revenue of $ 20 billion per year over the next four years (from 2025). It is also expected to become one of the largest and fastest growing industries in the world.

With many schemes such as PLI (for IT hardware, mobile phones, semiconductors and displays), SPECS, RoDTEP, etc. that promote electronics manufacturing through incentives, this billion dollar industry will increase tax revenue for the Government of India. Indians as citizens tend to prefer repairs and maximize the lifespan of every piece of equipment they use. It has the potential to support the creative ecosystem in the equipment manufacturing space. The Global Repair Center in India opens up many opportunities for repairmen to generate revenue, thus generating huge tax revenues for the Government of India.

Today’s India is proud of its demographic dividends. To capitalize on these dividends, jobs need to be created. Millions of our unemployed youth must have jobs. The electronics repair sector is particularly attractive here. The sector has the potential to qualify as one of the new sectors for employment growth in India. MAIT in its study noted that if the necessary initiatives are taken to advance the electronics repair sector, the country is expected to generate five million direct jobs in the next four years. Moreover, under the current scenario of the COVID-19 pandemic, which has led to all-out chaos in the economy, forced businesses to lay off employees and left millions of Indians unemployed. It is expected that this sector will be the next upward sector, a good that will create new jobs, thereby increasing employment in the country.

Repairing electronic equipment that is in operation will definitely increase its lifespan, thereby reducing the amount of electronic waste that would be generated if an electronic gadget was disposed of as waste. India is already undergoing a large number of repairs for locally available devices, these are existing user processes, existing logistical frictions and long-term TAT for repairs that keep large companies from outsourcing electronic equipment overhaul in India. India has a clear advantage over China and Europe over labor costs, it also has a world-class repair infrastructure owned by both Indian and foreign companies already based in India. All he needs to get big orders in is an e-repair policy (ERSO). A policy that bridges the existing gap by:

  • Creating Hubs Repair – Where all customs and tax clearance is available through an efficient and time-sensitive process. This is especially important because the repair business has short deadlines, convenient for customers who require equipment to move from the landing port to the repair center and back to the shipping port within 5-6 days after the repair.
  • Facilitate the user process – Separation of serial numbers of equipment imported for repair with those exported after repair: the current system requires that only the same equipment that was imported for repair be exported back, and serial numbers are compared by customs. The repair industry, however, believes that it is much more convenient to send a part that was repaired earlier and kept as a “reserve”.
  • Creation of a logistical repair corridor / canal – In order to keep the TAT at 5-6 days, it is important that the government has created a logistics channel / corridor that facilitates movement from the landing port to the repair shop. Current user processes need to be streamlined; the technology would have to be used on another level.
  • Stimulating repair of foreign equipment – Repairs to foreign equipment need to be encouraged to tip the scale of the repair economy in favor of India on the world repair arena. This incentive could be by offsetting excess tax revenue received by the government precisely from this industry. This simple mechanism could potentially stimulate large-scale ERSO growth.

While production relies on proportional imports, the repair industry is an industry with a high level of performance and has excellent profits. As repairs in India grow, so does the demand for electronic components. With reliable orders Indian e-resource repair companies will use more leverage in sourcing these components from abroad. It will also create a stockpile of strategic components in the country, which the country urgently needs at a time of disruption of the global supply chain. Slowly but steadily, component production will also move under the weight of increased demand.

The opportunity required by the country for India to become a center for electronics repair is an effective ERSO policy. A policy that stimulates the repair of foreign equipment and allows you to get a useful regulatory and logistical solution. A system in which logistical and regulatory deadlines are tightly controlled and there is a mechanism for quickly resolving industry issues. If the Prime Minister’s vision to make India a $ 5 trillion economy is to be realized, India will definitely need a boom in the electronics repair industry.

(Writer President of MAIT)


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