India’s Electronics Industry: How’s It Doing?

Supply-chain problems, shortage of manpower, fluctuating dollar, and inflation are some of the challenges facing the electronics industry in India. Increased demand, expanding customer base, and growth in indigenous manufacturing are some of the boons for the Indian electronics industry. So, how is the sector doing? Has it recovered after Covid or not?

Supply-chain problems, shortage of manpower, fluctuating dollar, and inflation are some of the challenges facing the electronics industry in India. Increased demand, expanding customer base, and growth in indigenous manufacturing are some of the boons for the Indian electronics industry. So, how is the sector doing? Has it recovered after Covid or not?

“How was the last financial year for the Indian Electronics Industry?”

That’s the question our team tried to find the answer to by talking to 350-plus top-shots and business executives spread across different industry segments, and geographies. What we discovered was wonderful.

Business trends

Since we got a chance to talk to top executives, we didn’t just ask about business trends but other related issues as well. But, first let’s look at the key business trends that have been uncovered…

Is FY 21-22 a growth FY?

Did businesses grow in the latest fiscal year (Apr 21-Mar 22) over the previous year (Apr 20-Mar 21)? That was the first question we asked. And, we have good news to share…

A whopping 84.3% reported that it was better than last FY. And, only 10.3% reported it was not good, with 4.9% reporting “the same as last FY.” For very few it is very bad.

How did FY 21-22 compare to the pre-Covid FY?

In other words, did you grow in the FY with little impact from Covid? That’s what we posed next.

We were surprised by the findings here. For an overwhelming majority (71.5%) the previous FY was better than FY 19-20. That means the Indian electronics industry has recovered from the ills of Covid, and is running towards a rapid growth.

Result. 71.5%: It’s better | 21.9%: Bad | 6.2%: It’s similar| Rest: Very bad (0.4%)

How about the supply-chain crisis?

You can’t do a meaningful survey of the electronics industry without examining this pressing issue — the dire supply-chain crisis affecting production around the world, including India.

Given the positive results shared earlier, we feel that the supply-chain crisis may be short-lived. But, we were wrong! The majority (64.8%) said it was as bad as before. Additionally, 16.4% said it was getting worse.

Result. 64.8%: Not as good as before | 16.4%: Worse than before | 13.8%: This is no longer an issue | Rest: It’s better (5%)

Launching new products?

This question is aimed at OEMs. Given the unique combination of challenges and opportunities, do they launch new products? Have they launched any product recently or planning to launch one soon?

It is encouraging to see that 52% of them have launched new products recently. And, an additional 20% plan to launch one soon.

In other words, there is clear evidence of investment in their businesses, and therefore sets the stage for long-term growth.

Result. 52.9%: Launched new products recently | 20.6%: Plan to launch new products soon | 26.5%: Not launched and no plans to launch in the near future

Expanding the channel partner network?

Often, when a market expands, the need for partnerships increases—especially between OEMs and their channel partners or system integrators.

37% have become businesses that don’t need channel partners. Apart from them, the majority of those surveyed (34%) seem happy with their existing channel partners and therefore do not want to expand or invite new partners. Around 20% are actively looking for new partners—and it can be an opportunity for like-minded companies to partner,

Result. 37.1%: Our business does not need channel partners | 34.3%: There is no need for expanding the channel partner network at the moment | 20.5%: Yes, we are expanding our channel partner network | 8.1%: Yes, we plan to start expanding our channel partner network.

HR Trends

Business trends aside, our survey was able to capture some valuable insights about hiring industry trends. However, because we speak to business decision makers and influencers, some are unsure about their hiring practices and therefore cannot answer these questions.

Are you hiring now?

One of the first casualties of Covid is job cuts. Is the dark period over? Has hiring started? That’s what we’re looking to find out.

Happy to report that there is good news here as well: most (54%) confirmed that they are actively hiring!

Result. 54.1%: Hiring new talent | 37.0%: No, we are not hiring | 9%: Don’t know about current hiring needs.

Is hiring tech talent a challenge?

Post-Covid, there is a lot of talk about ‘mass resignation,’ especially in the technology sector. Some companies have seen their attrition touch 30% quarterly! Since tech talent has become the core of the electronics industry, it is important to understand if hiring tech talent is a challenge for Indian businesses.

As expected, most respondents (70%) shared that they face challenges in hiring tech talent. It seems like it’s the best time for tech talent right now.

Result. 70.2%: Yes, getting good people with a technical background is a challenge | 14.4%: No, we do not see technical hiring as a challenge | 15.4%: Not in a position to comment.

Can jobs be found on websites like LinkedIn or Naukri.com?

With so many companies hiring, where can tech talent find out about the opportunities available? Are they job websites like Naukri.com or LinkedIn? 56% promote their job openings on job-related websites. Some seem to depend on traditional methods such as references, agencies, etc.

Result. 56.3%: We use portals like Naukri.com & Linkedin for hiring | 32.3%: No, we don’t | 11.5%: Not in a position to comment.

Can you list electronics jobs for free on ElectronicsForU.com?

That’s a question we ask at the end to understand if the industry knows about the platform we’ve created so they can engage and attract the right talent. Unfortunately, most (68.9%) do not know this. Clearly, our marketing team needs to do a better job promoting this platform.

Result. 68.9%: We don’t know | 31.1%: Yes, we know.