Demand Generation

MAIT is actively connecting with the industry and the government to create increased demand for electronics, as both sides stand to gain. Increased technology proliferation is the only catalyst to spur India into a digital and knowledge economy.

Essentially, there are two ways to achieve this:

  • Demand consolidated by government initiatives and policies:
    Demand generated by government initiatives leads to capacity building and manufacturing of these products, in order to meet the sudden demand. This trend was evident in the LED and CAS model where the ‘Domestic Efficient Lighting Programme’ launched by the Prime Minister was met with the humongous production of LED bulbs. The target to replace 77 crore incandescent bulbs in India with LED, impelled this growth. A similar momentum was seen for set top box manufacturers with the government’s cable digitisation drive.
  • Demand triggered by increasing the consumer market:
    Increasing the consumer market will change the economy, generate employment and see a rise in Small and Medium-Sized Enterprises (SMEs). It will result in socio-economic growth, as focus will be on growing beyond urban India. Government spend on education, agriculture and ICT infrastructure tend to increase per capita income of the consumer, making devices more affordable to them and this should be leveraged.

Despite the fact that there is demand for electronics, it exists in silos, at this point. There is an urgent need to consolidate this demand to realise economic and social benefits. MAIT positions demand generation in conjunction with demand aggregation. There is a growing need to collate the requirements of the centre and as well as the states and create a depository of demand. This will support more manufacturing and create a pricing advantages.

There are a fair number of bottlenecks that exist with respect to government procurement, and these are being addressed by MAIT. Procurement needs to be streamlined and improvised, so that locally manufactured products are obtained easily by government agencies. The government is one of the largest buyers for the industry and consolidation of orders will result in huge cost-savings. In order to achieve this goal, the Government’s e-Marketplace GeM, has been set up. Going forward, state governments also need to integrate with GeM.

While promoting indigenous manufacturers, steps need to be taken to simultaneously encourage MNCs to invest in the country and for this, their business needs must be taken into consideration. MAIT is consistently looking at balancing the requirements of both SMEs as well as MNCs in all our representations with the government.

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