By Lalit Arora

The Indian electronics industry has witnessed extraordinary growth in the last decade, emerging as one of the fastest-growing sectors on the international stage. Valued at $180 billion in 2022, this dynamic industry is anticipated to further grow and touch a staggering $400 billion by 2025.

While the mushrooming Indian electronics industry is paving a hopeful path for economic advancement, it comes with its own share of challenges. The environmental impact associated with the industry’s fast expansion is one of the most pressing challenges in its journey. The electronics sector is a major consumer of energy and water, and its operations produce significant amounts of waste. As the industry continues to scale, addressing these environmental concerns has become important for a sustainable future.

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Need for prioritising sustainable manufacturing practices

The urgency of prioritizing sustainable manufacturing practices becomes apparent, especially when looking at the key statistics related to MSMEs in the Indian electronics industry. A Deloitte study indicated that India will have 1 billion smartphone users by 2026, with rural areas driving the sale of internet-enabled phones.

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A survey conducted by Statista indicated that in 2023, in India, over 76.2 per cent of the respondents stated that they had one laptop in their household. It was followed by 15.8 per cent of the respondents having two laptops in their household. Also, data collected by the National Family Health Survey 5 (2019–21) pointed out that 68 per cent of households in the country own a TV, while 18 per cent have a washing machine, 38 per cent have refrigerators, and 24 per cent have ACs.

Higher consumption rates of electric and electronic equipment amidst rapid industrialization and a rise in disposable incomes are one of the reasons for the rise in the consumption of electronics. The pandemic also has played a major role in the surge in demand for electronics.

Another factor responsible for the rise in e-waste is the short life cycles owing to built-in or planned obsolescence. This is primarily a result of device manufacturers and developers lowering the performance and usability of devices (often via software updates). The concept behind this is to inspire people to buy brand-new and more recent technologies. For example, smartphone manufacturers may introduce such updates, and users may face issues such as the phone hanging frequently or losing access to certain functions. This results in the replacement cycle for smartphones being on average shorter than two years.

Also, there are few options for repair for some of these products. Some of the challenges to repair include the design of products, the availability of spare parts and information; access to reliable professional repairers, the cost and convenience of replacing smaller items compared to getting an item repaired, and consumer preferences and attitudes not favouring repair.

In light of the above, a sustainable business model for the Indian electronics industry is the need of the hour. Not only will it curb environmental pollution, but it will also help companies attract more buyers, save costs, and gain positive brand recognition.

Embracing sustainable manufacturing practices

Sustainable manufacturing entails a comprehensive approach to designing, producing, and utilizing products that mitigate their environmental footprint while also contributing to economic and societal well-being. By adopting such practices, MSMEs can play a pivotal role in ensuring the industry’s growth aligns harmoniously with environmental stewardship.

Some approaches that could make the industry green include innovation in design to ensure greater shelf life for the product, a circular supply chain, changing the perception of consumers, and carbon offsetting.

Dependence on fossil fuels can be lowered if MSMEs switch to renewable energy sources, such as solar and wind power. By doing so, these enterprises can significantly curtail greenhouse gas emissions, bolster air quality, and exemplify their commitment to a greener future.

The implementation of energy-efficient equipment and processes can also considerably enhance energy efficiency within MSME operations. This not only reduces energy expenditures but also contributes to a substantial decrease in environmental impact, further solidifying their commitment to sustainability.

Through the use of eco-friendly materials and processes, MSMEs can produce products that leave a minimal ecological impact. This shift toward sustainable practices inherently diminishes the environmental footprint associated with their offerings.

Likewise, the integration of recycled materials and the design of easily disassembled and recyclable products can effectively minimize waste generation. As per the UN data, 4 MT of raw materials could be easily made available for recycling. Utilizing recycled metals is profitable for companies too. According to a study by Toxics Link, 5 tonnes of e-waste would yield a profit worth Rs 1,78,308.

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By ardently embracing sustainable manufacturing practices, MSMEs operating in the Indian electronics industry possess the potential to achieve a twofold impact: safeguarding the environment and optimizing their financial performance. Beyond the immediate gains, these practices serve as a cornerstone for fostering a more sustainable future for India.

Final Thoughts

Sustainable manufacturing stands as a pivotal imperative for Micro, Small, and Medium Enterprises within the Indian electronics industry. Through the adoption of sustainable manufacturing practices, these enterprises can champion environmental protection, amplify their financial viability, and collectively steer India toward a more sustainable and prosperous future. As the industry continues to evolve, the integration of sustainable practices offers a promising pathway to harmonize economic growth with environmental stewardship, thereby yielding enduring benefits for both MSMEs and the nation at large.

Lalit Arora is the Co-founder of UBON. Views expressed are the author’s own.

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