Delhi’s electronics market suffers due to imports of cheap electronics goods from China

- Advertisement -

The presence of the unorganised electronics market in Delhi is affecting the business of organised market players

Lala Lajpat Rai Market, Delhi

Delhi, home to one of the biggest electronics markets in Asia—Lala Lajpat Rai market—is popular as a trading hub for electronics. On the other hand, the national capital region (NCR), which comprises Gurgaon, Noida, Faridabad and Ghaziabad, is emerging as a manufacturing base for the electronics industry, though at a very slow pace compared to other regions in India.

While the NCR has the manufacturing facilities of companies like LG, Samsung, Intex, etc, Delhi has a few manufacturers of capacitors, TV tubes, LED lighting, etc. These include Phoenix Contact (India), Continental Device India Ltd, Deki Electronics Ltd, Samtel Color Ltd, Havells India Ltd, Surya Roshni Ltd, C&S Electric Ltd, etc.

- Advertisement -
Manish Kwatra, CEO, Metro Electronic, Products

Says Manish Kwatra, CEO, Metro Electronic Products, a distributor of electronic components, “Even though some manufacturing has started taking place in the NCR, Delhi is still the main distribution centre of electronics for north and east India.”

According to Pankaj Gulati, executive vice president and COO, Continental Device India Limited (CDIL), a manufacturer of electronic components, some companies have their manufacturing bases in the NCR and not in Delhi, because of the difference in operating costs between Delhi and other regions of the NCR. For example, the cost of labour is very high in Delhi compared to Gurgaon and Noida. “This is because of the minimum wages set by the Delhi government,” he says.

Strengths and weaknesses of the city

Pankaj Gulati, executive vice president and COO, Continental Device India Limited

Delhi has a number of trading markets like the Lala Lajpat Rai market, Bhagirath Palace and Nehru Place for electronics and IT products. The main advantage manufacturers and traders of Delhi and NCR have is their close proximity to the corporate and government decision making bodies. Traders’ associations like All India Radio and Electronics Association (AIREA) and Central Radio and Electronics Merchants Association (CREMA) play important roles in voicing the concerns of the traders to the state governments. Adds Pankaj Gulati, “Delhi and NCR enjoy the advantage of being located close to manufacturing hubs like Baddi in Himachal Pradesh, which makes it easier for the manufacturers in Delhi to approach the factories located there.”

Unfortunately, Delhi also has a huge unorganised market, which is flooded with cheap electronic goods from China. Informs Pankaj Gulati, “This unorganised market is dependent on cheap components imported from China, which are usually used in electronic devices like mobile chargers, etc. Since these unorganised players don’t pay any taxes, they can’t buy from the organised Indian players. Hence, it is the domestic organised manufacturers who have to bear the brunt, in terms of low sales.”

On the infrastructure front, the shortage of power is a problem, which is common to both Delhi and the NCR region. While Delhi has a shortage of land, the manufacturing units in NCR have developed mainly due to the huge availability of land. Manish Kwatra, however, believes that Delhi and the NCR can be promoted as a major hub for electronics manufacturing units if a combined approach and joint initiatives are taken up by the government, manufacturer associations and trade bodies.

Government initiatives

With the union government trying to boost electronics manufacturing in India, state governments are also coming up with their own policies for their local electronics industries. The Delhi government has recently announced some initiatives with the aim of helping the capital become a manufacturing destination, which in turn, could attract investments in electronics manufacturing.

Delhi government plans to set up a knowledge based industries (KBI) park in Baprola, west Delhi, and a multi-level manufacturing/services hub in Ranikhera, north Delhi, which it hopes will attract investments worth Rs 700 billion by 2015, and generate employment opportunities for nearly 300,000 people.

For the KBI park at Baprola, the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) is developing 3,11,608 sq m (77 acres) at the cost of Rs 12 billion. The project will cater to the specific needs of the information technology, ITES and R&D sectors. The Municipal Corporation of Delhi has allocated land for the development work to start in the Baprola project while approval from the Delhi Development Authority is awaited. The project, with metro connectivity, is in tune with the industrial policy for 2010-2021 and will be operational by 2015, providing direct employment to 100,000 workers and indirect employment to another 170,000 people.

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Growth Opportunities Connected With The Growing Semicon EcoSystem In India

0
India must concentrate on electronics products and semiconductor components, as progress in one area reinforces the other. The country can unlock immense economic opportunities...

“Don’t Let Designations Become A Wild Goose Chase”

0
In his childhood, he possessed just one sweater, meant to last through many winters. He could not join IIT Roorkee because the cost of...

“Capitalise On ‘China Plus Two,’ Where Products With Higher Value Addition Become The Focus”

0
EPIC Foundation aims to transform India into an electronics hardware product nation by collaborating with governments, universities, design houses, and startups. In a conversation...

Buzz

Ultraviolette Aims For European And Middle Eastern Expansion

0
Niraj Rajmohan, Co-Founder and CTO of Ultraviolette stated that 2024 is set to mark the company’s foray into international markets while simultaneously strengthening its...

Chargeup’s Goal: 25,000 Drivers In 17 Cities By 2025, Prioritizing Smaller Cities

0
Chargeup, the forefront battery financing and comprehensive EV asset management platform in India, is on a mission to integrate 100,000 drivers within the upcoming...

Ampere Nexus, Electric Scooter Launching April 30th

0
Greaves Electric Mobility’s Nexus, having recently traversed the distance from Kashmir to Kanyakumari, is set to be the brand’s inaugural luxury electric scooter and...

Important Sectors

Exploring India’s Limited Selection: Just Six Robust Hybrids Priced Under ₹ 5 Million

0
As the United States passenger car market embraces hybrid vehicles, India’s car market is teeming with benefits and convenience for consumers. Yet, within the...

Top 10 Selling Electric Cars In The World

0
In the list of top 10 selling electric cars in the world, it seems to be a tight race between China’s BYD and the...

Ultraviolette Aims For European And Middle Eastern Expansion

0
Niraj Rajmohan, Co-Founder and CTO of Ultraviolette stated that 2024 is set to mark the company’s foray into international markets while simultaneously strengthening its...

Ampere Nexus, Electric Scooter Launching April 30th

0
Greaves Electric Mobility’s Nexus, having recently traversed the distance from Kashmir to Kanyakumari, is set to be the brand’s inaugural luxury electric scooter and...

Ford Investes In Expanding EV Software Capabilities At Chennai Hub

0
Ford Business Solutions India, presently with a staff of 12,000, is poised to expand by an additional 3,000 employees. Ford, recognized for its efforts...

Manufacturing

Honda plans major EV factory construction in Canada,

0
Honda's dedication to this facility reflects its wider ecological objectives, which include a target to only offer zero-emission vehicles by 2040 and to attain...
Sona Comstar

Sona Comstar Launches Mexico Plant For North American EV Demand

0
The new facility, established to address the increasing demand for premium driveline solutions for BEVs in North America, will focus on manufacturing differential assemblies...

Sterling Tools Inks MoU With Yongin For EV Components Facility

0
Sterling Tools announced that this strategic partnership is anticipated to bring in Rs 250 crore in business over the next five years. This collaboration...

Tata Elxsi-Renesas MCU Boosts EV Cost Efficiency And Market Speed

0
The Motor Control Unit's modular, scalable design facilitates integration across various EV applications, reducing time to market by 40%, lowering design and development costs...

Ramkrishna Forgings To Supply Powertrain Parts To Top US Electric Carmaker

0
Indian producer of rolled, forged, and machined products enter the US electric vehicle market for the first time. Ramkrishna Forgings, an Indian supplier of rolled,...