MAIT proposes MeitY to make inroads for ERSO

India can create a $20bn global repair and calibration market in the next 5 yrs.

MAIT's detailed presentation to Minister Ashwini Vaishnaw.

07 September 2022, New Delhi: A delegation from India's leading apex body representing electronics and telecommunication MAIT made a detailed presentation recently on the opportunity for Electronics Repair Services Outsourcing (ERSO) to Shri Ashwini Vaishnav, Hon'ble Minister of Railways, Communications and Electronics & Information Technology (MeitY)

MAIT's president, Mr. Raj Kumar Rishi, led the presentation meeting along with other key industry experts and senior officials from MeitY, the Ministry of Commerce & Industry, MoEF&CC, and the Ministry of Finance. The presentation was based on MAIT's earlier recommendation to the MEITY to make India a global hub for electronics products repair, as well as its identification of the potential of ERSO to bring in another revolution in the business outsourcing ecosystem.

Speaking on this development, Mr. Nitin Kunkolienker, President Emeritus, MAIT, said: "India is in an advantageous position to be a better place for ERSO as compared to its other counterparts in Asia, such as China, Taiwan, Indonesia, and Malaysia, due to various factors, including the availability of a competent workforce at a reasonable cost as well as other operational costs. We are happy that the Government has appreciated our idea and has considered it keenly."

Earlier, in May 2022, MAIT submitted its recommendations regarding ERSO to the ministry. The recent meeting was the next step towards the same, where both government officials and industry experts representing MAIT brainstormed on the scope and practical implications of ERSO to take it forward.

"Electronics Repair can be a second revolution as an outsourcing business on the lines of the BPO or KPO industry. On top of that, it will create windows of opportunity for the RMA(Repair Management Authorization) industry, attracting foreign investment into the country. Moreover, with adequate government support, India would not only see some electronic repair unicorns but also create a significant repair-based knowledge economy in the next few years," added Mr. Kunkolienker.

As per MAIT's estimate, India can easily create a global repair and calibration market of $20bn in the next 5 years by just accumulating 30% of the global share. In fact, the apex body considers this forecast a conservative one.

"We are thankful to the Government for accepting our recommendations. We are working in tandem with the Government in the successful actualization of this great outsourcing business revolution. The Government has shared with us some of the checklists for its successful implementation, for which all stakeholders are working. There are plans to start a pilot project on this. Identification of a strategic location for this pilot project is underway," said Retd. Col. Ali Akhtar Jafri, Acting DG at MAIT, who was also present at the meeting.

About MAIT

MAIT, is India’s APEX electronics Industry association representing the IT, Mobile, Datacom, Consumer Electronics, White Goods, Industrial Electronics and Services subsectors of the Electronics industry. MAIT is recognized by both the Government, as well as the industry for its role in the growth and development of the Electronics industry.

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Parthasarathi Mishra

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