ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Tamil Nadus Electronics Industry

Lessons for ‘Make in India’

India's information technology hardware segment is heavily dependent on imports of components and finished goods. After surveying Tamil Nadu's hardware electronics sector, this article argues that the stagnation of the electronics hardware sectors stems from a failure to create backward linkages, a liberal import regime and a foreign direct investment policy that has focused on employment generation instead of capability building. The study highlights the import-intensive nature of the industry, identifies skill gaps and infrastructural constraints faced especially by medium- and small-scale manufacturers.

The survey of electronics industry in Chennai was part of a larger study conducted by the Institute for Human Development and sponsored by the International Labour Organization. It is titled, “Promoting Employment and Skill Development in the Manufacturing Sector in India.” The author is grateful to the ELCINA members and numerous CEOs of electronics manufacturing companies in Chennai who spent their valuable time and information on the subject.

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