PMA policy will lead to increased demand for T&M equipment

As PMA policy aims at boosting electronics manufacturing, it will indirectly lead to increased demand for T&M equipment. The policy will also increase the necessity for more testing labs in the country

By Richa Chakravarty

Friday, 31 May 2013: A big business opportunity is brewing for the test and measurement (T&M) industry in India, due to the boost given to indigenous manufacturing by the recent preferential market access (PMA) policy. This policy encourages domestic manufacturers to either entirely manufacture products in India or to do at least 30 per cent value-addition to every product they make from imported components, if they plan to sell to government departments. In both the cases, testing individual components as well as the finished products has been made mandatory for all manufacturers to qualify under the PMA policy.

In such a scenario, it is obvious that with the growth of the electronics manufacturing sector, the T&M industry will also grow and will witness increased demand. This will happen because the PMA policy will also increase the necessity for more testing labs in the country.

Present capacity of testing devices
According to a senior official of the Department of Electronics and Information Technology (DeitY), the PMA policy requires all manufacturers to test not only the components that they import and use in assembling a product, but also the finished product, in order to either self certify them or test them at government recognised labs. “All components in the bill of material (BOM) require testing. Each input needs to be tested along with the testing of the final product. Testing, being an essential part of the criteria to qualify under the PMA policy, will eventually trigger growth for the T&M industry in India,” he says.

- Advertisement -

However, the country’s existing capacity for testing electronic devices is inadequate to meet current demands. Consequently, Kapil Sibal, the minister of communications and IT, recently encouraged investment, both FDI and domestic, to set up additional testing lab infrastructure for safety testing of electronic devices. Recently, seven labs have been recognised by Bureau of Indian Standards for the testing of electronics products (see table).

Impact of PMA policy on T&M industry

Sadaf Arif Siddiqui, education programme manager, Agilent Technologies
Sumit Sharma, marketing manager, India, Good Will Instrument Co Ltd

The T&M industry in India is expected to witness a huge positive change in the coming years due to the government’s aggressive efforts to boost manufacturing. Says Sadaf Arif Siddiqui, education programme manager, Agilent Technologies, “Testing is an integral part of manufacturing and assembling. With the government encouraging the setting up of assembling lines, the T&M industry in India will definitely get a boost. Since the introduction of the PMA policy is very recent, it is difficult to comment on the increase in demand for T&M devices right now. However, we are hopeful that the policy will have a positive effect on the T&M industry.”

“It is needless to say that the right policies and regulations will certainly give a push to the T&M industry. I believe every T&M player focusing on segments like telecom, IT and power electronics will benefit from the PMA policy. It indeed is a small but significant step taken by the government to boost manufacturing in the country,” shares Sumit Sharma, marketing manager, India, Good Will Instrument Co Ltd.

Madhukar Tripathi, manager telecom segment indirect channel, Anritsu India Pvt Ltd

However, the industry feels that the T&M industry will get a boost only if more manufacturing rather than assembling takes place in India. Says Madhukar Tripathi, manager telecom segment indirect channel, Anritsu India Pvt Ltd, “The growth opportunity for the T&M industry seems to be immense. However, the T&M industry will grow more if we have manufacturing units here in India rather than just units assembling the devices. Depending upon the function of the component, there are multiple interfaces one needs to test for these devices.”

Sai Venkat, India marcomm, Tektronix India

Some sources in the T&M industry feel that the PMA policy may have minimal effect on a few players. Informs Sai Venkat, India marcomm, Tektronix India, “In an assembly job, components are tested for their performance output while in manufacturing, there is a lot of board level testing. Tektronix focuses on the R&D vertical where instruments are used for testing PCBs. As our product line caters to a different vertical, the PMA policy will have minimal impact on our business.”

Anil G Chowta, director, Falcon Electro Tek Pvt Ltd

Sharing the same view, Anil G Chowta, director, Falcon Electro Tek Pvt Ltd, says, “Mandating testing of components will definitely drive the growth of T&M devices; however, the amount of testing required also depends on the nature of the products and the level of testing. IT and telecom products require heavy testing that can trigger growth of T&M instruments.”

Another concern is the level of testing. Testing the huge volumes of imported components will be cumbersome. So, will these be tested on a random basis? Explains a senior official of DeitY, “We expect the same level of testing that is required during the production process to be done by the assembling units also. Hence, all components should be thoroughly tested and no random testing and checking is acceptable from the companies.”

Tushar Bhavsar, head, IHV sales and strategy, The Motwane Manufacturing Company Pvt Ltd

According to Tushar Bhavsar, head, IHV sales and strategy, The Motwane Manufacturing Company Pvt Ltd, “Ensuring that the manufacturers are testing the complete set of components and not doing it randomly is a difficult process to evaluate. Testing of hard disk drives requires each component in the drive to be tested in its individual capacity, which is a cumbersome process. Hence, evaluating the level of testing and ascertaining the 30 per cent value-addition in the production process seems difficult.”

T&M devices that will witness more demand
If they rely on individual strengths, T&M companies have good scope for growth as devices ranging from the low, medium to high-end will be in demand. With energy efficient ratings gaining ground, electrical safety testers will be in demand. Basic devices like analysers, oscilloscopes, power supplies, signal analysers and digital multimeters will register growth in demand.

For IT products like laptops and desktops, optical and RF testing along with testing of voltage and current levels will require protocol testers, display testers, and AC-DC power supplies; hence these will all be in demand.

For telecom components, RF and signal testing devices and high -frequency testing devices will be in demand. Instruments like scalar network analysers, spectrum and protocol analysers will be in demand for this purpose. Apart from this, video pattern generators, power meters and power analysers will also witness demand in the future.

T&M equipment that will see more demand
Products to be tested along with components Testing equipment
Desktops Protocol testers, display testers, power supplies, etc
Laptop Analysers, oscilloscopes, power supplies, scalar network analyser, spectrum and protocol analyser, etc
Tablets Oscilloscopes, power supplies, scalar network analyser, spectrum analyser
Telecom equipment Video pattern generator, power meter power analysers, etc
Dot-matrix printers DMM, DSO, arbitrary function generatr
Smart cards IC programmers, IC testers, data acquisition testing equipment

 

BIS recognised testing labs
Name of the laboratory Scope in terms of safety standards
Electronics Regional Test
Laboratory (North), New Delhi
IS 616:2010, IS 13252(Pt-1):2010
IS 302-2-26:1994
Electronics Regional Test
Laboratory (West), Mumbai
IS 616:2010, IS 13252(Pt-1):2010
Electronics Test and Development Centre, Bengaluru IS 616:2010, IS 13252(Pt-1):2010
IS 302-2-25:1994, IS 302-2-26:1994
UL India Pvt Ltd, Bengaluru IS 13252(Pt-1):2010
TUV Rheinland (India)
Pvt Ltd, Bengaluru
IS 616:2010, IS 13252(Pt-1):2010
IS 302-2-25:1994, IS 302-2-26:1994
Intertek India Pvt Ltd, New Delhi IS 616: 2010 and IS 13252(Part 1): 2010
Conformity Testing Labs Pvt Ltd, New Delhi IS 13252(Pt-1):2010 and IS 302-2-
26:1994

Electronics Bazaar, South Asia’s No.1 Electronics B2B magazine


- Advertisement -
Loading form…

Industry's Buzz

thyssenkrupp

thyssenkrupp Expands Automotive Electronics R&D In Pune

0
thyssenkrupp Automotive Technology is expanding automotive electronics and software R&D in Pune, planning to grow its engineering team beyond 300 to support global programmes...

Nuuk and EPACK Durable Partner to Manufacture Small Appliances in India

0
Direct-to-consumer brands team up with contract manufacturers to boost domestic production of air fryers and circulator fans.  Direct-to-consumer (D2C) home appliance brand Nuuk has joined...

Potential US Curbs Bears Down on Chinese Optical Chip Stocks

0
Shares of upstream laser chip suppliers suffered steeper declines compared to downstream optical transceiver manufacturers. A report by Morgan Stanley, earlier this month, warned...
Prime Minister Modi

Modi Flags 6G And Domestic Electronics Production At IMC 2026

0
Prime Minister Narendra Modi has outlined India's next telecom priorities at India Mobile Congress 2026, linking the 5G-to-6G roadmap with semiconductor production, domestic electronics...
Fujitsu

Fujitsu-Owned 1Finity Deploys 200+ Engineers To Expand India’s Optical Networking Business

0
Japan’s Fujitsu-owned 1Finity is expanding its India networking business with more than 200 engineers as AI and data-centre growth drives demand for optical networking...

Learn From Leaders

Does India’s Chip Packaging Growth Need Local Materials At Scale?

0
What will it take for specialised semiconductor materials manufacturing to grow in India? Packaging volumes will be a key factor as OSAT facilities move...
Ronak Kumar Samantray, Founder, TM2Space Technologies Pvt Ltd.

“Our goal is to build data centres in space.” – Ronak Kumar Samantray, TM2Space

0
A space startup aims to build orbital data centres, letting users run AI models and store data on satellites while also supplying satellite hardware...

India’s Photonics Puzzle Is Finally Coming Together 

0
Can India turn its scattered photonics capabilities into a stronger industry? A new association aims to connect the ecosystem and strengthen the domestic value...
Jin Bains, CEO, Mini-Circuits

Mini-Circuits CEO Jin Bains on Navigating High-Frequency Component SWaP-C Constraints, Emerging Markets, and Career...

0
In this exclusive, Jin Bains, Chief Executive Officer (CEO) of Mini-Circuits, explains in a conversation with Dilin Anand of EFY about areas of emerging...

India Needs Not a Hundred, But Thousands of Chip Diversified Companies 

0
Can India build a semiconductor ecosystem beyond fabs? Indiesemic believes thousands of diversified chip companies are needed to make that possible. India’s semiconductor push is...

Startups

PowerMon

Aquaexchange Brings Monitoring And Automation To Shrimp Farming

0
The startup has developed an AI- and IoT-enabled platform that helps shrimp farmers manage farms, access financing, monitor operations, and connect with markets. The startup...

Drone-Like Aircraft For Logistics From BluJ Aerospace

0
Hyderabad-based BluJ Aerospace is developing indigenous electric and hydrogen-powered vertical take-off and landing (VTOL) aircraft for remote cargo transport. BluJ Aerospace, a Hyderabad-based aerospace startup...
Jash Jetly, Co-founder and CEO of EVE

“The cloud isn’t the only way to run AI. We’re proving it can happen...

0
A startup is building a decentralised AI and communication network that runs across everyday devices instead of centralised cloud servers. In an interview, Jash...
Mohit Gupta, founder and CEO, TYLsemi

Building AI Chips, One Block at a Time 

0
What if building an AI chip became as simple as assembling reusable blocks? The startup is working to make custom silicon accessible beyond the...
Seema Johar, Co-Founder and Product Director, Compcarta Solutions Pvt Ltd

“We Let Designers Focus on Innovation, Not Infrastructure.”- Seema Johar, Compcarta Solutions

0
In an exclusive interview, Seema Johar of Compcarta speaks with EFY’s Akanksha Sondhi Gaur about why setting up an EDA environment can be harder...