Unit 12 Electronics Commodities

Prepared by Nikitha...

Electronics and information technology segment of the Indian industry are the fastest growing sector both in term of production and exports. In order to boost up the exports of electronics goods, the Govt has completively delicensed the electronics industry with the exception of aerospace and defense electronics.furthermore, the foreign investment in this sector has been liberalised,with the result that it is attracting considerable interest not only as a vast market but also as potential production base by multinational companies.

Production of television sets accounts for about 22%of overall production of electronics goods...

TOP TEN MARKETS OF INDIA'S EXPORTS OF ELECTRONICS GOODS.

*USA
*Singapore
*Germany
*Hong Kong
*UAE
*UK
*Netherlands
*China
*Italy
*Japan

EXPORTS ITEMS
*Colour Television
*B/V T
*Audio products
*Electronic Watches

INDIAS COMPETITIVE ADVANTAGES
* Low prise and quality products.
*Low labour cost.
**Foreign Direct Investments.
*The Govt has delicensed the  electronic industry with the exception of aerospace and defense electronics....

DISADVANTAGE
*Productivity low
*R/D and technology development has been poor.
*Product design
capabilities low.
*low adequate infrastructure facilities. *High competition.

COMPETITORS IN THE INTERNATIONAL MARKET .
*China
*Thaiwan
*south Asian coutries.
*Korea
*Singapore
*Malaysia
*Thailand
Exports did not constitute a majour activity for Indian companies apart from short term profitability consideration to take advantage of export incentives announced by the Govt from time to time.

POLICY ISSUES ON EXPORT

The policy lacunae can be found to be severe on terms of domestic taxes,customs tariff of critical inputs and overall tariff structure, procedural delays in matters related to export and providing a strong infrastructure.
           
Strategy to enhance export
*Enhance production
*Enhance quality
*size and price offer
*modern technology products
*provide efficient capacity
*high quality infrastructure
*proactive Govt policy.

INTERNAL PROBLEMS OF THE INDIAN ELECTRONICS INDUSTRY.
*small capacity as compared to international standards
*locational disadvantage and highly dispersed production facilities
*no concerted effort on technology development and product upgradation.
*no effort towards backward integration and weak linkages with component producers.
*Lack of financial resource for international marketing.
*Brand name
*Quality problem with high rejection rate.
EXTERNAL PROBLEMS
*MNCdomination in world consumer electronics market
*Growing competition from emerging competitors in NICs
*Negative govt policies in the past.
*High domestic taxes
*Higher interest cost than all Asian competitors..

Suggestions
*High rate of innovation and constant product upgradation
*major presence in home market
*Economies of scale by operating at much higher levels of production and timely expansion
*Export sales under Indian brand and setting up production fecilities for capturing markets in developing coutries.