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Localisation to boost India’s electronics industry: Vijay Aditya Raghavan
Articles- Mar 27,26
In this interview, Vijay Aditya Raghavan, VP – Operations EMS & Head – New Business Initiatives at TVS Electronics, elaborates on the country’s increasing electronics manufacturing capabilities, challenges, and opportunities
India's electronics manufacturing ecosystem has shown remarkable growth with production surging from $19 billion in 2014 to over $100 billion today. In this interview, Vijay Aditya Raghavan, VP – Operations EMS & Head – New Business Initiatives at TVS Electronics, elaborates on the country’s increasing electronics manufacturing capabilities, challenges, and opportunities.
How has TVS Electronics grown in India over the years?
TVS Electronics, established in 1986, has transformed from a printer pioneer into a provider of integrated end-to-end electronic solutions that empower businesses, through its Product Solutions Group (PSG), Electronic Manufacturing Services (EMS), Repair & Maintenance Services (RMS), E-auction. The company has significantly expanded its manufacturing footprint in India with an advanced Industry 4.0–enabled facility in Tumakuru, Karnataka, integrating SMT lines, PCB assembly, testing, and box-building, enabling over 80 per cent local value addition under the Make in India initiative, supported by a 400 kV solar power plant.
PSG offers a portfolio of India-designed and India-manufactured products including Touch POS systems (TP i615c Smart, TP i615w Pro, TP 616 Prime/CA), Touch Kiosks (TK 24/22A), and AIDC solutions such as handheld computers and RFID solutions, along with label, dot matrix, thermal and laser printers; barcode scanners; currency counters; and billing software. These solutions are built for high-uptime, high-volume Indian operating environments.
Over the years, TVS Electronics’ solutions have been widely adopted across key end-user industries such as Indian Railways, PSU and private banks, Department of Posts, LIC, large retail chains, logistics, pharmaceuticals, manufacturing, healthcare, and other government and enterprise segments. This growth is further strengthened by a PAN-India service network with over 320 service centres covering more than 19,000 pin codes.
How would you assess the current strength and depth of India’s electronics manufacturing ecosystem today?
India’s electronics manufacturing ecosystem stands robust yet maturing, with production surging from $19 billion in 2014 to over $100 billion today, fuelled by 300+ mobile assembly units and emerging clusters in Karnataka, Tamil Nadu, Uttar Pradesh, and. Strengths include a vast and skilled workforce, high assembly capacity (e.g., mobiles at 99 per cent), and rising exports (a four-fold increase), positioning India as a key player in global supply chains. However, depth lags with only 15-20 per cent domestic value addition due to 80 per cent import reliance on components like semiconductors, and displays, alongside a $100 billion demand-supply gap where local production meets just 10 per cent of needs.
Government initiatives like PLI, electronics clusters, and component incentives have reshaped the sector. From an industry standpoint, what has worked well, and where are the gaps that still need attention?
PLI schemes have excelled in mobiles and TVs, attracting over Rs 140 billion investments, doubling production to 35 crore units annually, and capturing 14 per cent global iPhone share, with strong state-level outcomes in Tamil Nadu. The 22 approved electronics clusters and Rs 230 billion component incentives (targeting displays, PCBs, batteries, and sensors) promise 91,600 jobs and 30-40 per cent value addition, aligning with the Atmanirbhar Bharat initiative.
Gaps include PLI disbursal delays (under 50 per cent utilization in some sectors), high investment thresholds sidelining SMEs, mismatched incentives for textiles/solar, insufficient R&D/skills for high-tech components, and lack of fabless design support.
As supply chains diversify globally, how important is localisation of components, advanced manufacturing, and supply-chain resilience for India to remain competitive in high-tech electronics?
Localisation of components like PCBs, passives, and displays—coupled with advanced manufacturing—is critical for India’s competitiveness in a China Plus One world, slashing 40 per cent BOM import costs, tariffs, and logistics vulnerabilities exposed by COVID. It fosters 30-40 per cent value addition via incentives, leverages demographic advantages, and builds resilience through hybrid models (import chips, localise assembly), enabling competition with Vietnam/Thailand.
Government tax breaks and infrastructure are pivotal to deepening supply chains for high-tech areas like EVs and semis, preventing India from remaining a low-value assembler.
What is your outlook for India’s electronics manufacturing over the next five to seven years?
The outlook is highly optimistic, with production targeting $300 billion by 2026 and scaling to $500 billion+ by 2032-33, propelled by PLI 2.0, 50+ clusters, three semiconductor fabs, and IT hardware PLI. Exports may reach $120-150 billion, generating 6 million jobs, with diversification into EVs, renewables, and components driving 20 per cent+ CAGR. Success hinges on addressing infrastructure/power gaps and accelerating localisation to close the $140 billion supply deficit.
What are your growth plans for TVS Electronics?
Medium-term plans focus on B2B solutions driven by the adoption of AIDC/track-and-trace for logistics/pharma, billing software enhancements, POS innovations, and EMS expansion in defence, medical, IoT, industrial and electrical vehicles.
We also intend to rapidly grow by empowering enterprises in the infrastructure managed services space by leveraging the TVSE Aikya platform supported by a service network across over 19000 pin codes in India, to serve the IMS requirements of Banking, Retail, Manufacturing and Hotel industries.
Long-term, TVSE aims for over 80 per cent indigenisation, relaunching South Asian exports, forging global OEM partnerships, integrating IoT/robotics, boosting margins through automation and Service Tec, and venturing into e-waste/solar/EV services to become a Class I full-lifecycle supplier. This leverages the existing 320+ centre network for sustained growth.
Vijay Aditya Raghavan
TVS Electronics
AatmaNirbhar Bharat
PLI schemes
Electronics Manufacturing Services (EMS)
electronics
Localisation
Industry 4.0
Mobile assembly units
Make in India
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