Underlining ways to eradicate the challenges and to spur local manufacturing in Indian Appliance and Consumer Electronics (ACE) Industry, Amitabh Kant, CEO, Niti Aayog said that government need to come up with phased manufacturing programme (PMP) for appliances manufacturing sector too.
In an event organised by CEAMA on Wednesday, Kant highlighted that the current GDP of India of 7.5 percent and to make it scale higher contribution of consumer electronics industry is very critical, therefore government must take some concrete step to support this sector in their initial phase. “This will enable them to penetrate the domestic market but also use the strength to export for the global market.” he added.
He also urged the industry players to not only focus on higher penetration of domestic market rather encouraged them to be a part of global supply chain scenario. Citing examples he further stated that “China, Japan and Korea have done it on the back of export. So ACE industries have to penetrate the global market which is not possible without size and scale.”
Other highlight of the event was the release of a detailed report on ‘Championing Change in the Indian Appliance and Consumer Electronics (ACE) Industry” by CEAMA in association with PwC that also outlined the challenges faced by Indian ACE industry. The report mentioned that while India has good market potential, legacy challenges such as manufacturing disabilities and unavailability of components and logistics challenges could lead to muted or stagnant growth in local value addition for ACE manufacturing.
In addition, the report also pointed out some prospects that can flourish domestic manufacturing in ACE industry. Cost competitiveness, large-scale demand generation and ease of doing business were cited as some key enablers in this regard.
– By Shruti Mishra