New Delhi, April 24: The electronics manufacturing sector in India has the potential to generate over five million direct jobs, a new study has revealed. According to a recent study conducted by MAIT, the electronics repair market in India can help generate over 5 million direct jobs, with a potential to generate revenues of $20 billion per annum. It must be noted that MAIT is the apex body representing the ICT and electronics manufacturing sector in India. It said that the repair and calibration of electronic subassemblies and products is a $100 billion industry worldwide.
A report titled 'Electronic Hardware Repair Services Outsourcing' (ERSO) launched at the Electronics and Telecom Manufacturing Summit 2021 (MAIT-ETMS) said that high costs of repairing electronic goods in developed countries like the US and Europe are compelling the corporates to send goods overseas, where such repair services are provided at lower prices due to both skills and cost arbitrage.
The MAIT study also made recommendations to the Centre to streamline and simplify procedures to make India a repair and refurbishment hub for IT and electronic products. Nitin Kunkolienker, President, MAIT was quoted in the IANS report saying that the electronics repair industry has the potential of becoming an emerging sector for employment growth in India. With the right regulatory support from the government of India, the domestic repair service sector in India can experience a tremendous boost. "It will, thereby, generate valuable Forex revenue as well as create employment, especially during these COVID-19 times, which has made millions of Indians job-less," he added.
The study also highlighted background on the regulatory landscape and emphasised bottlenecks and difficulties being faced day to day by the repair units in India. These include regulatory approvals, import/ export restrictions, investment and Infrastructure cost, lack of skilled workforce and technology, e-waste related constraints, etc. "The initiative to make India an electronics repairs outsourcing hub is the next sunrise sector for the country with the potential to generate over 5 million new direct jobs and attract investment from across the globe," the report said.