The global electronics industry is one of the fastest-growing sectors, increasingly embedded in every aspect of the world economy. India has strategically positioned itself as a key player in this space, particularly in the Electronic System Design & Manufacturing (ESDM) segment. This initiative is integral to the country’s “Make in India” and “Digital India” campaigns, making electronics repair and refurbishment a burgeoning industry.
The expanding electronics repair industry
Globally, the repair and refurbishment of IT and electronic products have become a substantial industry, valued at approximately $188 billion. In developed nations like the United States and Europe, the high costs of electronics repair have led companies to outsource these services to countries where repair costs are more competitive. India, with its cost-effective labor force, has become an attractive hub for electronics repairs. The current annual revenue for repair services is estimated at around $350 million.
Given the labor cost advantage over countries like China, Malaysia, and Indonesia, India’s repair services have become a key proposition for businesses seeking affordable solutions. This shift has opened up immense opportunities for India to strengthen its position in the global electronics service market.
Challenges in logistics and regulatory hurdles
Despite the promising potential, significant challenges remain in exporting repairs to and from India. Logistics barriers and stringent customs enforcement continue to hinder the smooth flow of goods. The process of importing and exporting electronics repairs can take more than 16 days, contributing to delays that could impact the business's ability to remain competitive.
Modernization issues
Additionally, electronics repair businesses in India face difficulties in modernizing infrastructure and retaining skilled personnel due to increased financial pressures. These barriers limit their ability to effectively compete with global counterparts, adding complexity to their operations.
One significant obstacle for India’s repair sector is the logistical challenge of transporting electronics, especially items like mobile phones, tablets, and laptops. Unlike many other countries, several Indian airlines restrict the transport of electronics via air cargo due to safety concerns. This limitation exacerbates logistical difficulties, particularly when shipping to Western markets, which are crucial for these businesses.
India’s initiatives to overcome obstacles
India has recognized these challenges and is actively taking steps to address them. The government has launched a pilot program aimed at strengthening the country’s Electronics Repair Service Outsourcing (ERSO) capabilities. The goal is to capture 20% of the global ERSO market share within the next five years.
As part of this liberalized framework, companies now have the opportunity to re-export repaired goods to non-origin countries—an option that was previously unavailable. In addition, the government has introduced simplified processes and eased customs procedures, allowing smoother imports and exports of electronic repairs. These measures are expected to significantly reduce logistical delays and strengthen India’s position in the global repair market.
A promising future for India’s electronics repair sector
India’s expanding role in the global electronics repair industry, driven by cost-effective solutions and government initiatives, shows great promise. By addressing logistical challenges and regulatory hurdles, India is paving the way for increased competitiveness and the potential to become a global leader in electronics repairs and refurbishing services.
Market
Trade-in
Repair
