IT hardware makers’ body MAIT in a meeting with IT and telecom minister Ashwini Vaishnaw on Wednesday suggested making India a hub of electronic products repair, which can become a USD 20 billion industry in five years.
Earlier in May 2022, MAIT submitted its recommendations regarding Electronics Repair Services Outsourcing (ERSO) to the ministry. “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,” MAIT President Emeritus Nitin Kunkolienker said.
MAIT’s president Raj Kumar Rishi led the presentation meeting along with other key industry experts, and senior officials from MeitY (Ministry of Electronics and Information Technology), ministry of commerce and industry, environment ministry and finance ministry. As per MAIT’s estimate, India can easily create a global repair and calibration market of USD 20 billion in the next five years at a conservative estimate by just accumulating 30 per cent of the global share.
“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,” Kunkolienker said.
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, the statement said.