Technology has never been more central to every aspect of human existence than it is today. The digitization of everything has been markedly accelerated by Covid-19 and has spurred innovation and new models of working, learning, interacting, and care. While lockdowns over the past year have had an impact, demand for PCs has been stronger than ever. IDC’s Worldwide Quarterly Personal Computing Device Tracker reported 3.1 million PC shipments to India in Q1 2021—the highest ever number of first-quarter shipments to the country, reported Fortune India.
While the digitization of everything—accelerated by Covid-19—has resulted in an unprecedented demand for semiconductors, it has also led to stressed supply chains across industries. Global dependence on a few countries for the supply of substrates, components, and other essential materials has also made apparent that complete offshoring of manufacturing makes supply chains more fragile, especially in a geopolitically tense environment.
Like several industries, from automobiles to electronic devices, depending on semiconductors for their end products, this abrupt chip shortage has constrained their capacities and prompted a scramble to find quick solutions. Governments are taking serious note and want to take measures that reduce these disruptions. But the semiconductor industry is a long-term game with high barriers to entry and real solutions will take time and strategic thinking to implement.
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The ecosystem around semiconductors and devices is diverse. While we have phones and personal computers on the consumer side of things, opportunities also lie in the industrial Internet of things (IIoT), edge innovation, and human-centric A.I.—all connected to computers. The Indian government’s Production-Linked Incentive (PLI) Scheme that encompasses electronic and technology products along with sectors like battery manufacturing, automobiles and auto components, and telecom and networking products is a step in the right direction.
Supportive policies and legal framework, infrastructure, logistics, communications, connectivity, public-private collaboration, and skilled labor are all keys to making India an even more attractive manufacturing destination. There is a need for swifter, predictable, and cost-effective import and export mechanisms, strong IP law, and uninterrupted cross-border data flows to ease product development, especially in IoT and related spaces. The goal is to turn India into a booming destination to build IT sector products and solutions spanning PCs, servers, cloud, IoT, network infrastructure, and beyond.
The IT manufacturing journey from research to market depends entirely on driving an industry-led focus with strategic alignment across government initiatives that will help boost innovation, productivity, and competitiveness. A digitized self-reliant supply chain and the ability to predict any disruptions in production are essential to maintaining quality, time, and cost standards. Investments in infrastructure development and a strong freight assistance mechanism are also essential to this process. India must also focus on building skilled manpower to be considered a favorable destination for players large and small.
The Indian economy is at a crucial juncture right now. The government has rightly set its eyes on creating an ecosystem that enables local companies to meet domestic as well as global demand. Surging consumer demand aligned with a strong IT manufacturing ecosystem will not just boost India’s development but will be instrumental in helping achieve its mission to become a $5 trillion economy.
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