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Electronics manufacturing boom: TeamLease forecasts 100,000 jobs in 6-12 months

This surge will be fuelled by the dynamic growth in sectors such as mobile phone manufacturing, semiconductor packaging, and telecom equipment production.

“In the next three years, about 500,000 people will be required, and the projection is that there will be a requirement of about one million people in five years,” said Subburathinam P., chief strategy officer, TeamLease Services. 

The jobs will span entry-level positions, comprising both skilled and semi-skilled talent across companies, and will extend to mid- and senior-management roles, he added.

The biggest contributing factor will be both ongoing and planned expansions in manufacturing under the production-linked incentive (PLI) scheme, with companies having existing facilities, and units approved under PLI will either establish new plants or expand production capacities.

“Some companies are doubling production, and about a dozen new companies will be setting up plants. Three will go live within this quarter. The estimated workforce numbers required within 6-12 months is about 100,000.”

The government-backed PLI scheme started with mobile phone manufacturing in 2020, and was subsequently extended to cover 14 sectors, including electronics, white goods, steel, auto and pharmaceuticals, with a total outlay of 1.79 trillion. 

The scheme is aimed at enhancing local manufacturing capabilities as well as exports. According to data from the ministry of commerce, over 746 applications were approved till November 2023. While incentives worth around 2,900 crore were disbursed in FY23, this year it is expected to be even higher.

The electronics and mobile phone industry stood out, with the value of local production breaching 44 billion, including exports worth 11.1 billion. In FY23, total electronics production soared to around $101 billion.

In telecom equipment manufacturing, a 60% import substitution rate has been achieved so far, rendering India almost self-reliant in antennae, GPON (Gigabit Passive Optical Network), and CPE (Customer Premises Equipment),

PLI is now being reviewed. A revised scheme for the IT hardware industry has seen the likes of Foxconn, Dell, Lenovo and HP Inc. commit investments of about 3,000 crore for making laptops, PCs and servers in India. 

This will alone create direct employment for 50,000 professionals, and indirect employment for 150,000 people, the ministry of electronics and information technology said.

Semiconductor packaging and fabrication is the third largest contributor to job demand, and the fastest growing, Subburathinam said. The likes of the Tata Group and Micron Technology, are beginning to set up plants in India, he added.  Tata Electronics’ packaging plant in Assam, and the fab unit in Gujarat, will create around 75,000 jobs, and will subsequently require more professionals.

Demand stemming from the mobile phone and electronics industries will continue to fuel the need for semiconductors, further exacerbating demand, and generating job opportunities.

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Published: 29 Mar 2024, 08:06 PM IST

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