No exaggeration to say that the Indian indigenous market of electrical & electronic goods is so massive that the domestic companies are unable to cater to local demands and gratify the market with the products, meeting global quality standard. Owing to globalization, almost every international brand is doing business in India, offering quality products and delightful services.
Advent of new companies, constant change in the price structure, and leap in manufacturing capacity, affect the profitability & margins of the companies drastically. Problem in the distribution of the electronic products in rural area and semi urban area, lack of awareness of the products, and widespread presence of gray market of electronic goods in India, are a matter of deep concern. Manufacturers have got to shed focus on the distinction of the products not only in terms of packaging but also considering look & technology. This can stand the veritable & genuine products out from the generic & shoddy products. Easy access to internet information and presence of extensive array of choices have made the consumers smarter, they want to own a quality product at low rate, leading to the fierce competition.
The sentiment of the industry is generally measured in terms of research intensity, export & import capacity, expertise development, infrastructure enhancement, and etc. The entire structure of the industry is determined by the government policies & initiatives which should be conducive & optimal.
Indian government has envisioned augmentation in the capacity of power generation would be 86,500 MW in 12th plan period. A blueprint for investment is drafted for the distribution & transmission segments with an eye to domestic electricity plan and the Integrated Energy Policy. Enforcement of Electricity Act 2003, National Electricity Policy-2005 and proposal of schemes like the APDRP (Accelerated Power Development and Reform Program) & RGGVY (Rajiv Gandhi Grameen Vidyutikaran Yojana) are meant for reducing loss that takes place in transmission and distribution annually owing to traditional & degraded lines, overloading of the 11 KV systems, distribution transformers and low tension lines and understanding the intricacy of the various factors and its impact on the demand for electrical equipment. IEEMA (Indian Electrical and Electronics Manufacturers Association) opted private company (PWC) Pricewaterhouse Coopers for evaluating the power sector development program and its impact on electrical device & equipment industry.
Government of India offers central support for strengthening and elevating the transmission and distribution network. 25% of the project cost is provided as Additional central plan assistance in form of Grant to the state utilities.
Indian Government keeps on pursuing the policy of self-reliance, laying emphasis on building up indigenous ability, is also dedicated to development and utilization of indigenous capabilities. It follows the strong policy including encouragement of entrepreneurship, expansion of domestic technology by virtue of significant investment in R&D, taking in new technology, and scraping the regulatory system. Government is also liberal to foreign investment and technology collaboration in order to acquire higher technology, maximize exports, and expand the production base.