Consumer Discretionary

<p style="text-align: justify;"><span data-preserver-spaces="true">Electronics are leading the race towards a sustainable future.&nbsp;</span><span data-preserver-spaces="true">We will unveil how these powerful tools </span><span data-preserver-spaces="true">are driving innovation and spearheading the decarbonization of industries</span><span data-preserver-spaces="true"> worldwide.</span><span data-preserver-spaces="true"> Electronics are reshaping the sustainability landscape and powering a cleaner and greener tomorrow.&nbsp; </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">We stand at the crossroads of history, tasked with a challenge and a transformative opportunity. Let&rsquo;s empower decarbonization and revolutionize the industry through the transformational potential of electronics. </span><span data-preserver-spaces="true">It is a journey that demands bold vision, unwavering commitment, and a</span><span data-preserver-spaces="true"> pursuit of innovation.&nbsp; </span></p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;"><strong><span data-preserver-spaces="true">Integration of Electronics into Industries&nbsp;</span></strong></span></h2><p style="text-align: justify;"><span data-preserver-spaces="true">The integration of electronics into industrial processes has the potential to revolutionize efficiency, productivity, and sustainability.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">From manufacturing to agriculture, electronics are revolutionizing how we produce and consume. Precision agriculture techniques are guided by data and technology, optimizing resource usage and minimizing environmental impact. </span><span data-preserver-spaces="true">Smart</span><span data-preserver-spaces="true"> manufacturing processes streamline operations, reduce waste, and increase efficiency. </span></p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;"><strong><span data-preserver-spaces="true">Leading Towards Decarbonization Goals</span></strong></span></h2><p style="text-align: justify;"><span data-preserver-spaces="true">As we know,</span><span data-preserver-spaces="true"> decarbonization is the process of </span><span data-preserver-spaces="true">reducing carbon emissions and transitioning to cleaner and more sustainable energy sources.</span><span data-preserver-spaces="true"> It is a crucial step in combating </span><span data-preserver-spaces="true">climate change and safeguarding the health of our planet</span><span data-preserver-spaces="true"> for future generations.&nbsp; </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">As India moves forward with ambitious decarbonization goals, the focus is on harnessing power from renewables,</span><span data-preserver-spaces="true"> where electronics will play a </span><span data-preserver-spaces="true">very</span><span data-preserver-spaces="true"> crucial role.&nbsp; </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">India has experienced numerous natural disasters related to climate change </span><span data-preserver-spaces="true">since 2010</span><span data-preserver-spaces="true">, such as the drastic weather patterns that led to unprecedented rainfall and flooding in states like Kerala, Tamil Nadu, and Andhra Pradesh. The 2021 land subsidence crisis in Joshimath</span><span data-preserver-spaces="true"> &ndash; </span><span data-preserver-spaces="true">a popular tourist town in the</span><span data-preserver-spaces="true"> northeastern state of Uttarakhand</span><span data-preserver-spaces="true">. Heat</span><span data-preserver-spaces="true"> waves or hotter and hotter summers every year.</span><span data-preserver-spaces="true">&nbsp; </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">All countries in the world </span><span data-preserver-spaces="true">have initiated policies to combat this growing concern. During COP26 in the UK, Indian Prime Minister Narendra Modi announced a target for the </span><span data-preserver-spaces="true">country</span><span data-preserver-spaces="true"> to achieve net zero by 2070.</span><span data-preserver-spaces="true">&nbsp; </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Taking</span><span data-preserver-spaces="true"> a stand against climate change</span><span data-preserver-spaces="true">, India has</span><span data-preserver-spaces="true"> made climate commitments at various international forums. </span><span data-preserver-spaces="true">India</span><span data-preserver-spaces="true"> is leading many countries by powering the future with renewable energy</span><span data-preserver-spaces="true">. This is</span><span data-preserver-spaces="true"> accelerating sustainable mobility in the transport sector and converting energy from conventional sources to green technologies.</span><span data-preserver-spaces="true">&nbsp; </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Extensive use of fossil fuels and </span><span data-preserver-spaces="true">coal dependency</span><span data-preserver-spaces="true"> to meet our power and energy requirements are among the main </span><span data-preserver-spaces="true">reasons behind</span><span data-preserver-spaces="true"> greenhouse gas emissions.</span><span data-preserver-spaces="true">&nbsp; </span></p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;"><strong><span data-preserver-spaces="true">Harnessing Power from Renewables</span></strong></span></h2><p style="text-align: justify;"><span data-preserver-spaces="true">In its move towards reducing fossil fuels and</span><span data-preserver-spaces="true"> coal dependency, the focus has been on harnessing power from renewables.&nbsp; </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">India set a renewable energy target of 175 GW by</span><span data-preserver-spaces="true"> 2025, which included:</span></p><ul style="text-align: justify;"><li><span data-preserver-spaces="true">100 GW from solar</span></li><li><span data-preserver-spaces="true">60&nbsp;GW from wind</span></li><li><span data-preserver-spaces="true">10&nbsp;GW from biomass</span><span data-preserver-spaces="true"> power</span></li><li><span data-preserver-spaces="true">5&nbsp;GW from small hydropower </span></li></ul><p style="text-align: justify;"><span data-preserver-spaces="true">The country is </span><span data-preserver-spaces="true">on track to have 50% of its installed power generation capacity from non-fossil sources by 2030.&nbsp; </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">The country&rsquo;s installed power generation capacity from non-fossil</span><span data-preserver-spaces="true"> sources is 186 GW, which is 43% of its total installed capacity, </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">The impact of electronics extends far beyond the energy sector. Electronics are facilitating a shift towards sustainability across industries, from manufacturing to transportation.&nbsp; </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Decarbonization necessitates a fundamental shift in mindset, where </span><span data-preserver-spaces="true">sustainability becomes not just a goal but a</span><span data-preserver-spaces="true"> guiding principle in all our actions and decisions. </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">If India is to have </span><span data-preserver-spaces="true">an</span><span data-preserver-spaces="true"> orderly and accelerated decarbonization, the transition </span><span data-preserver-spaces="true">has to be set up</span><span data-preserver-spaces="true"> within this decade.</span><span data-preserver-spaces="true">&nbsp; </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">&nbsp;</span></p><h2 style="text-align: justify;"><span style="font-size: 14pt;"><strong><span data-preserver-spaces="true">Next Decade is Of Electronics Industry </span><span data-preserver-spaces="true">which</span><span data-preserver-spaces="true"> will be </span><span data-preserver-spaces="true">engine</span> <span data-preserver-spaces="true">in</span><span data-preserver-spaces="true"> driving India&rsquo;s </span><span data-preserver-spaces="true">Growth</span> </strong></span></h2><p style="text-align: justify;"><span data-preserver-spaces="true">Today, we find ourselves amid a technological rebirth. The rise of personal computing and microprocessors transformed how we work, communicate, and interact with the world. Suddenly, the power of electronics was in the hands of everyday people, democratizing access to information and unleashing a wave of creativity and innovation. </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">The world has become more interconnected with the advent of the Internet and mobile technology. Industries have embraced digitalization, leading to smart factories and the Internet of Things. Automation and efficiency have reached new heights, driving unprecedented productivity levels and reshaping society. </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">We stand on the brink of a new </span><span data-preserver-spaces="true">decade</span><span data-preserver-spaces="true">,</span><span data-preserver-spaces="true"> at the dawn of yet another technological revolution</span><span data-preserver-spaces="true">.</span> <span data-preserver-spaces="true">From artificial intelligence and machine learning to quantum computing and</span><span data-preserver-spaces="true"> beyond</span><span data-preserver-spaces="true">, the possibilities are endless</span><span data-preserver-spaces="true">.</span> <span data-preserver-spaces="true">Electronics continue to push the boundaries of what is possible,</span><span data-preserver-spaces="true"> propelling us towards </span><span data-preserver-spaces="true">a future that is both</span><span data-preserver-spaces="true"> exciting and uncertain.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">India has emerged as a preferred destination for electronics manufacturing in recent years, and for good reason. The country</span><span data-preserver-spaces="true"> has </span><span data-preserver-spaces="true">a large and expanding consumer market, a </span><span data-preserver-spaces="true">strong</span><span data-preserver-spaces="true"> IT industry, a skilled labor force, and government policies and initiatives </span><span data-preserver-spaces="true">that support the growth</span><span data-preserver-spaces="true"> of the electronics manufacturing sector.</span>&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;"><span data-preserver-spaces="true">Potential</span><span data-preserver-spaces="true"> of Electronics Manufacturing in India </span></span></h2><p style="text-align: justify;"><span data-preserver-spaces="true">India's consumer market for electronic products is rapidly growing, driven by rising incomes, increasing urbanization, and growing adoption of digital technologies. </span></p><p style="text-align: justify;"><strong><span data-preserver-spaces="true">Growth Prospect</span></strong></p><p style="text-align: justify;"><span data-preserver-spaces="true">The India Brand Equity Foundation (IBEF)</span><span data-preserver-spaces="true"> estimates that the country's electronics manufacturing sector was worth $215 billion in 2019&ndash;20 and will grow to $540 </span><span data-preserver-spaces="true">billion by 2025.&nbsp;&nbsp;</span></p><p style="text-align: justify;"><strong><span data-preserver-spaces="true">Make in India</span></strong></p><p style="text-align: justify;"><span data-preserver-spaces="true">The </span><span data-preserver-spaces="true">electronics manufacturing industry has witnessed a notable influx of foreign direct investment (FDI) </span><span data-preserver-spaces="true">as a result of</span><span data-preserver-spaces="true"> the government's "Make in India" campaign, with an estimated USD 3.6 billion in 2023.&nbsp;&nbsp;</span></p><p style="text-align: justify;"><strong><span data-preserver-spaces="true">IT Industry</span></strong></p><p style="text-align: justify;"><span data-preserver-spaces="true">A </span><span data-preserver-spaces="true">significant and continuously expanding pool of trained workers, including engineers and technicians, </span><span data-preserver-spaces="true">is available in India,</span><span data-preserver-spaces="true"> which is crucial for the production of electronics. The </span><span data-preserver-spaces="true">robust IT sector in the nation</span><span data-preserver-spaces="true"> can aid in the creation of new technologies and the production of electronic goods.</span></p><p style="text-align: justify;"><strong><span data-preserver-spaces="true">Industrial Parks and Special Economic Zones (SEZs)</span></strong></p><p style="text-align: justify;"><span data-preserver-spaces="true">Investments in industrial parks and special economic zones (SEZs) for the production of electronics have </span><span data-preserver-spaces="true">been made</span><span data-preserver-spaces="true"> by the government as part of its infrastructure development initiatives</span><span data-preserver-spaces="true">. </span><span data-preserver-spaces="true">In order to</span><span data-preserver-spaces="true"> establish</span><span data-preserver-spaces="true">, </span><span data-preserver-spaces="true">manage</span><span data-preserver-spaces="true">, and </span><span data-preserver-spaces="true">grow</span><span data-preserver-spaces="true"> manufacturing operations in India</span><span data-preserver-spaces="true">, </span><span data-preserver-spaces="true">this</span><span data-preserver-spaces="true"> gives businesses access to the facilities and infrastructure they need.</span><span data-preserver-spaces="true"> &nbsp;</span></p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span data-preserver-spaces="true"><span style="font-size: 14pt;">Government Initiatives</span>&nbsp;</span></h2><p style="text-align: justify;"><span data-preserver-spaces="true">The Indian government has implemented several policies and initiatives to support electronics manufacturing in the country.</span><span data-preserver-spaces="true">&nbsp; </span></p><p style="text-align: justify;"><strong><span data-preserver-spaces="true">National Policy on Electronics (NPE)</span></strong></p><p style="text-align: justify;"><span data-preserver-spaces="true">The National Policy on Electronics (NPE) aims to create an</span><span data-preserver-spaces="true"> environment enabling electronics manufacturing in the country. The policy targets creating a $400 billion electronics manufacturing industry by 2025, focusing on increasing domestic value addition and creating employment opportunities. </span></p><p style="text-align: justify;"><strong><span data-preserver-spaces="true">Make in India</span></strong></p><p style="text-align: justify;"><span data-preserver-spaces="true">The &lsquo;Make in India&rsquo; initiative, launched in 2014, offers financial incentives and tax breaks to companies that set up manufacturing operations in India. </span></p><p style="text-align: justify;"><strong><span data-preserver-spaces="true">PLI Scheme</span></strong></p><p style="text-align: justify;"><span data-preserver-spaces="true">With the goal of encouraging</span><span data-preserver-spaces="true"> domestic production of electronic goods and components, </span><span data-preserver-spaces="true">the Production Linked Incentive (PLI) scheme</span><span data-preserver-spaces="true"> has promised to give large-scale electronics manufacturers incentives of INR 40,951 crore ($5.5 billion) over </span><span data-preserver-spaces="true">the course of</span><span data-preserver-spaces="true"> the following </span><span data-preserver-spaces="true">five years.</span><span data-preserver-spaces="true">&nbsp;&nbsp;</span></p><p style="text-align: justify;"><strong><span data-preserver-spaces="true">Electronics Manufacturing Clusters (EMCs)</span></strong></p><p style="text-align: justify;"><span data-preserver-spaces="true">The government has also established Electronics Manufacturing Clusters (EMCs) </span><span data-preserver-spaces="true">across the country</span><span data-preserver-spaces="true">,</span><span data-preserver-spaces="true"> offering infrastructure and electronics manufacturing facilities. </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">With a competent labor population, government support, and a developing home market, India has a bright future in the electronics manufacturing </span><span data-preserver-spaces="true">sector</span><span data-preserver-spaces="true">. </span><span data-preserver-spaces="true">The </span><span data-preserver-spaces="true">goal of the</span><span data-preserver-spaces="true"> nation's policies and activities </span><span data-preserver-spaces="true">is</span><span data-preserver-spaces="true"> to establish an infrastructure-supporting, </span><span data-preserver-spaces="true">financially-incentivized</span><span data-preserver-spaces="true">, and business-friendly environment for electronics production in India.</span><span data-preserver-spaces="true"> Given the current changes in global supply chains, India </span><span data-preserver-spaces="true">is ideally situated</span><span data-preserver-spaces="true"> to develop into a center for electronic device product</span><span data-preserver-spaces="true">ion.&nbsp;&nbsp;</span></p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;"><span style="font-size: 10pt;"><em><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}">This article was contributed by our expert </span><a href="https://www.linkedin.com/in/ranjeet-bhelke-54555b61/" target="_blank" rel="noopener">Ranjeet Bhelke</a></em></span></p><p style="text-align: justify;">&nbsp;</p><h3 style="text-align: justify;"><span style="font-size: 18pt;">Frequently Asked Questions Answered by Ranjeet Bhelke</span></h3><p style="text-align: justify;"><span data-preserver-spaces="true">&nbsp;</span></p><h2 style="text-align: justify;"><span style="font-size: 12pt;">1. How is India harnessing power from renewables using electronics to achieve its decarbonisation goals?</span></h2><p style="text-align: justify;">Extensive use of Fossil fuels and coal-dependency, to meet our power and energy requirements are one of the main reasons behind green gas emissions. In its move towards decarbonisation by reducing fossil fuels and coal-dependency, the focus has been on harnessing power from renewables.</p><p style="text-align: justify;">India set a renewable energy target of 175 GW by 2025 which included, 100 GW from solar, 60 GW from wind, 10 GW from biomass power, and 5 GW from small hydro power.</p><p style="text-align: justify;">The country is on track to have 50% of its installed power generation capacity from non-fossil sources by 2030. The country&rsquo;s installed power generation capacity from non-fossil source is 186&nbsp;GW, which is 43% of its total installed capacity.&nbsp;</p><p style="text-align: justify;">Electronics Technology will undoubtedly play an instrumental role in the energy transition. An influx of innovative solutions will create new possibilities, helping the industry to unlock a clean and resilient energy system that's fit for the future.&nbsp;</p><p style="text-align: justify;">Power electronics, which conduct essential conversion and control activities, play a crucial role in connecting energy storage systems to renewable energy sources and the load or power grid.</p><p style="text-align: justify;">Power electronics devices, such as grid-tied inverters and energy storage systems, facilitate the smooth integration of renewable energy into the grid. These devices help manage the supplydemand balance by adjusting the flow of electricity when renewable sources fluctuate.</p><p style="text-align: justify;">Power electronic converters transform variable frequency electricity into DC and subsequently into fixed frequency AC power suited for long-distance transmission to the onshore grid.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">2. What role do emerging technologies like artificial intelligence and machine learning play in advancing electronics-driven&nbsp;decarbonisation efforts?</span></h2><p style="text-align: justify;">Artificial Intelligence (AI) has the potential to play a transformative role in decarbonizing the economy, helping to reduce greenhouse gas emissions and transition to a low-carbon future. AI can be applied to a wide range of decarbonisation challenges. According to the latest studies, AI can help to reduce greenhouse gas emissions by up to 10%, the equivalent of 2.6 to 5.3 Gigatons of CO2. Almost 75% of all global greenhouse gas (GHG) emissions are caused by producing and consuming energy. More AI for energy needs to be developed, if decarbonisation is one of the goals.</p><p style="text-align: justify;">Exploiting the benefits of AI in decarbonisation is not just an aspiration, but a tangible and dynamic reality.&nbsp;</p><p style="text-align: justify;"><strong>Optimizing Carbon Footprint Measurement</strong></p><p style="text-align: justify;">The optimization of carbon footprint assessment is a key component in the quest for environmental sustainability, and the introduction of AI presents a paradigm change in this vital process. AI has the underlying ability to improve data accuracy by using machine learning algorithms to instantly&nbsp;analyse large datasets. This improves the accuracy of carbon footprint estimates and helps companies pinpoint certain emission sources and patterns.</p><p style="text-align: justify;"><strong>Minimizing Waste in Production Processes</strong></p><p style="text-align: justify;">AI greatly increases the amount of waste that can be eliminated from industrial processes, which is a major step towards more sustainable and effective manufacturing. One study done in this regard found that AI could boost manufacturing productivity by up to 20% and reduce waste by up to 4%.</p><p style="text-align: justify;"><strong>Balancing and Enhancing Energy Distribution</strong></p><p style="text-align: justify;">In order to create a more robust and sustainable energy infrastructure, optimizing and balancing energy distribution is essential, and AI offers an innovative advantage to this difficult task. AI&rsquo;s skillful management of the enormous datasets produced by power systems and smart grids is the first step towards its contribution to the distribution of energy.</p><p style="text-align: justify;"><strong>Carbon Capture and Storage</strong></p><p style="text-align: justify;">An innovative front in the fight against climate change is the junction of artificial intelligence (AI) and carbon capture and storage (CCS). A study by the International Energy Agency (IEA) found that AI could reduce the cost of CCS by up to 30%. AI solutions solve issues and provide doors for more efficient carbon reduction by bringing a new degree of accuracy and efficiency to the CCS process.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">3. How can small and medium-sized enterprises (SMEs) leverage smart electronic manufacturing technologies?</span></h2><p style="text-align: justify;">Small and Medium-sized Enterprises (SMEs) integrate modern Smart Manufacturing-related Information and Digital Technologies (SMIDT) such as artificial intelligence with their business operations to enable smart manufacturing. Smart manufacturing is reminiscent of a fully integrated, collaborative production ecosystem that responds, in real-time, to the ever-changing demands and conditions across the value chain</p><p style="text-align: justify;">Embracing technology can empower SMEs to operate more efficiently, reach a broader audience, and respond promptly to market changes. By integrating technology into their operations, SMEs can position themselves as competitors in the business landscape.</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;"><span data-preserver-spaces="true">&nbsp;</span></p>