By Prashant Das, head-marketing & sales, The Motwane Manufacturing Co Pvt Ltd
India has emerged as a major market for test and measurement (T&M) equipment. The growing demand for electronic products has led to an increase in the number of manufacturers in the T&M space. A market survey on the Indian T&M industry shows that domestic demand has witnessed a tremendous growth over the past 18 months. The Indian T&M market has been driven by both global and domestic demand. India’s low labour costs combined with its good software skills are attracting foreign companies, thereby expanding the Indian T&M market.
The Indian T&M industry has registered 42 per cent and 38 per cent growth, respectively, during the last two fiscal years. It is expected to achieve a compounded annual growth rate (CAGR) of 30 per cent over the next five years. This growth will be achieved due to a higher growth in end user segments such as the communications test equipment and laboratory analytical instruments markets. The general purpose test equipment market is also expected to grow.
Potential of T&M industry
The Indian T&M market has been growing steadily compared to Western markets, where growth rates have hit a plateau.
The size of the Indian T&M instruments market is estimated to be Rs 1 billion in the near future. This is largely due to the formidable growth registered by the key industry segments like power, automobiles, electronics, pharmaceuticals, medical sciences and telecommunications hardware. Defence and other government sectors have also been instrumental in driving the growth of this sector. Increasing R&D activities across various industries, institutes and organisations are expected to further augment the growth of the Indian T&M market.
Today, India is a favourable destination for global investments, where huge industrial growth is expected. The presence of top MNCs has created healthy competition among all the existing players. This has led to the introduction of new technology, apart from challenging domestic players to reduce their product development time. By virtue of this, domestic players are not only able to produce world class products but also reduce their cost of manufacturing to almost half that of their foreign counterparts.
Domestic players are optimising resources and using the best manufacturing practices to enhance their quality to reach global standards, which allows them to look beyond the domestic market and pitch their products in the world market.