March 10, 2022

India, Manufacturing & Mindset

Disclaimer: These views and opinions are my personal.

In the recent past, I have participated in a couple of surveys conducted by a few semiconductors and Tech companies and there are a couple of articles & discussions going on social media about India & Electronic manufacturing.

India – Electronics Manufacturing | India – Electronics Design capabilities | India – Skills and skill development | Policies on Manufacturing in India

Survey results and the discussions show the optimacy of electronics manufacturing. It gives an idea of “how optimistic the people are towards the electronics manufacturing industry!” But between optimism and pessimism, there is a reality that should never be ignored.

There are multiple issues since then independence. I would like to share a story during the fourth plan (1969-1974 ) and 1975 & the decade.

• • During the fourth plan(1969-74) the expansion of television coverage to major metropolitan cities propelled the development of the domestic television manufacturing industry and the demand increased.
  • TV manufacturing was mostly a manual assembly of imported components where the picture-tube itself is accounted for about 40% of the ex-factory price and resulted in a high price.
  • When the price goes high, it is obvious that to develop our own electronic circuit & focus on home-grown technology – an additional R&D cost on industry. Well, everything went well until this point!!!
  • Somehow it developed, BUT the failure rate was high due to the unpredictable nature of the home-grown electronic circuit. The circuit was so sensitive to environmental changes like temperature and humidity.
  • The producers were not able to cope up with servicing demands due to the high failure rate.
  • Most of the manufacturers are survived either by unauthorized copying of imported circuits or by importing circuits(foreign collaborations were banned during that period).

Maybe, the actual seed for dependency on import or the habit of importing that happened during this period to support the demand of the day. Today India has become one of the major electronics importers. Instead of standardizing home-grown technology, the industry acquired a number of technologies that increased its reliance on imports.

Instead of standardizing home-grown technology, the industry acquired a number of technologies that increased its reliance on imports.

Q: Fine, then who is going to set this up? Perhaps, it should start from investors, technologists, and policymakers –

• • The mindset of investors – This industry needs a different mindset and this needs a little shift in the thought process.
  • Habituated to daily-based-trade business and/or short-time gains.
  • No habit of securing IPRs/filing patents
  • We need profits in the pocket by THIS evening.
  • We are not interested in spending time & money on research.
  • We don’t want cost-centers. We need only profit-centers.
  • Vocational courses/training are almost gone
  • Lack of parity in pay caused inclination towards high-pay jobs
  • All our skill development houses became business houses & easy money-making sources, not much skill development happening there!
  • The education system. This is one of THE utmost important systems to refine. One should realize that no country is being driven by only engineers, doctors, and civil/public servants.

Coming back to mind-set: One cannot compare money invested into a real-estate and electronics manufacturing or semiconductor company. It needs a deep sense of economy and an understanding of the technology business.

Well, we Indians performed enough to make 1.4+ billion population. Being one of THE countries having a young population – about 229 million of the age group of 15-24 years.

And of course, there are issues at different levels, now Bharath (The new India), as a nation is facing the consequences of history. It is time to act! Having one of the young generations on the planet, it is time to act!

What are we waiting for? Now it is time to skill India towards electronics manufacturing and to build the culture in India.

Being one of THE countries having a young population – about 229 million of the age group of 15-24 years. What are we waiting for?

Disclaimer: And again these views and opinions are my personal

Thank you!

GovindaRao Gotta | Founder, CEO | Semiconsoul Technologies