Electronics Sector Skill Council of India

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A Quarterly Newsletter by ESSCI

Electronics sector in India presents unique opportunities and challenges. It has been growing rapidly over the last couple of years and is expected to reach US$ 400 billion by 2020. Among several challenges, shortage of skilled manpower has been identified as one of the most critical constraints that the sector is confronting with. Electronics Industry in India presents unique opportunities and challenges. The electronic industry in India has grown from the production of Rs.328 billion to Rs.947 billion in the year 2009 at a CAGR of 16.4%. The Indian ESDM sector has 8 verticals, namely Consumer Electronics, IT Hardware, Telecommunications Equipment, Electronics Components, Strategic Electronics, Automotive, Medical & Healthcare and Industrial Electronics. Consumer Electronics & Telecom Equipment are the largest segments with about 27% share in total production.

 

As the sector presents a large opportunity with increasing thrust on higher value addition in manufacturing and product development, the employment in the ESDM industry is estimated to grow phenomenally. It is estimated that the sector employed about 0.9 million in the year 2008 which is estimated to increase to over 4 million by 2022. This would translate to an incremental human resource requirement of about 3.2 million.

 

While there is a huge need and demand for skilled workforce, there are neither national occupational standards nor any mechanism to streamline and standardize education / skill development for Electronics Profession in the country. As a result, there is an inconsistency in the competency level, affecting efficiency, productivity and delivery of goods & services. the functional and occupational mapping, standardizing the nomenclature for various job roles determining the future demand & developing the National Occupational Standards & Qualification Packs.

 

Opportunities & Challenges in ESDM Sector

  • India remains way behind in Electronics manufacturing compared to China which shares 30% in Global exports whereas India shares less than 1% only.
  • There is huge demand & need for skilled workforce in electronic sector however India has severe shortage of skilled workforce. There are only few training facility to ensure continuous skill development of trainees/ trainers.
  • No Mechanism to streamline & standardized education /skill development in Electronics profession in the country.
  • The high cost of developing products including duties, taxation, capital and infrastructure are leading to a slow pace of investment in this sector.

Industry Background

  • The Electronics market is growing rapidly and is expected to reach US $400 Billion by 2020.
  • The electronic industry in India has grown from US $ 20 billion in 2008-09 to US $ 25 billion in 2012-13 at a CAGR of 16.4%.
  • The Indian ESDM sector has 8 verticals- Consumer Electronics, IT Hardware, Telecommunications Equipment, Electronics Components, Strategic Electronics, Automotive, Medical and Industrial Electronics.
  • Employability in the sector is expected to grow over 28 Million by 2022.

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