- Investment in technology and research will be necessary to remain competitive
- The says growth in mobile phone manufacturing will be moderate
According to the Crisil SME tracker, the electronics industry is expected to see a revenue growth decline of four percent to 15 per cent during this fiscal year from 19 per cent in fiscal year 2019. This is mainly due to slower growth in mobile phone manufacturing and consumer electronics. Small and medium enterprises (SMEs) which constitute one-third of the revenue of the industry will also be badly hit this year. The report also says growth in mobile phone manufacturing will be moderate and in consumer electronics will not be in double digits due to reduction in demand.
These SME units play a significant role in assembly of mobile phone components and can be found in popular electronic clusters like Delhi-NCR and Bengaluru. Government policies in this segment have not been able to make a significant impact. Policies like Modified Special Incentive Package Scheme and the Electronic Manufacturing Clusters Scheme have stopped receiving applications.
CRISIL says due to this lack of policy measures, the domestic value addition in the industry will be limited. Continuous investment in technology and in research and development will be required to stay competitive.
