“India Needs To Remove Red-Tapism And Take Care Of Infrastructure, Roads, Railways And Most Importantly Grow Business”

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With local electronics output exceeding imports for the first time, India’s electronics ecosystem looks very promising. In an interaction with Baishakhi Dutta of Electronicsb2b.com, Vick Aggarwala, president and CEO of Supreme Components International Pte Ltd (SCI), a Singapore based component distributor shares his take on the current scenario of the Indian electronics industry and the growth opportunities he envisages in the coming days. Excerpts follow…

Vick Aggarwala, president and CEO of Supreme Components International Pte Ltd

Q) How has India been faring as a business destination compared to global markets recently?
In May of 2018, tariffs were imposed by the U.S. on China. The percolated effect on the ground started being felt in October-November of last year in the industry. It went on and on as tariffs got further increased; not withdrawn or reduced. The US and China are the top two world economies and have almost 75 percent of the total available market of semiconductors in the world. Components are roughly a 3/4 trillion-dollar industry. Globally, the snowball effect has spread to the rest of the world, including India.

Only the U.S. is relatively doing well right now. The rest of the world is doing badly. Japan, Korea, China, Germany, England, France, Italy, and India. India has two situations: one is their own internal issues and the other is because of the U.S. – China trade war. This has caused a slowdown in the Indian business. But I am investing in India because I foresee that it offers a tremendous potential to grow and expand.

Q) What are your thoughts on the recent corporate tax cut?
Recently the corporate taxes got reduced, which is down to 25 percent and 15 percent for manufacturers, which is the second-lowest in the world. Number one is Ireland which is 12 per cent. And then there are some Asian and European economies which are around 15 percent. So, India is at par with the world in terms of tax rates. This is going to help India because countries like the USA are looking to make investments in countries other than China. India with the English language speaking population, the western legal system, growing infrastructure, and factories moving out of China, definitely offers a great opportunity to encash upon.

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Q) What potential does India hold as an electronics business market?
USA, Korea, Japan, and Taiwan are looking to move out of China so that the country of origin can change thereby reducing the tariffs for incoming shipments into the USA to be zero. Countries being looked at are Vietnam, Myanmar, Thailand, and India. There is a tremendous electronics business potential in India because of the young population, infrastructure build-up, GST introduction, and the country getting more and more IT savvy.

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