ACE Dialogues

About

About The Event

Consumer Electronics and Appliances Manufacturers Association (CEAMA) was established in 1978 and is an all-India not-for-profit body representing Consumer Electronics, Home Appliances and Mobile Handset industry and its members include multinationals as well as domestic brands, OEM manufacturers and a host of small and medium scale entrepreneurs. CEAMA’s primary aim is to enhance the development of the sector it represents through sustainable engagement with stakeholders, among whom government is key. ACE Dialogues is an annual initiative of CEAMA that focuses on the challenges and opportunities confronting the Appliance and Consumer Electronics (ACE) industry. It chooses a subject that is relevant to the industry and brings together over 100 decision makers and experts to discuss and debate on the chosen subject.

The size of ACE industry comprising of large and small appliances and consumer electronics is estimated to > Rs 130,000 Cr. It contributes significantly to the exchequers of the Union and State Governments. The sector offers immense growth opportunities as household ownership of all ACE categories are well below global averages. The manufacturing and job-creating opportunities that this sector offers were recognized by the government, which included several ACE categories in the erstwhile Modified Special Incentive Package Scheme (M-SIPS), a scheme to attract manufacturing investments in electronic manufacturing, and in the National Policy on Electronics (NPE), both notified in 2012. (It may be noted that in M-SIPS does not feature in NPE 2.0, and an alternative scheme is in ideation stage). That said, steady reduction of tariffs and successive Free Trade Agreements has not allowed domestic manufacturing to flourish to the extent that the NPE had envisaged. The ACE industry remains fairly import-dependent for a number high value, sophisticated products but also for spare parts and components across the board.

Suppliers based abroad are reluctant to invest because the (potential) volume opportunity does not justify the investment, especially when available capacity in FTA countries and China can cater to the India demand without incurring fresh investment. The soon-to-be-signed Regional Comprehensive Economic Partnership of ASEAN + 5 that brings in China into the FTA fold is therefore a legitimate concern of the ACE industry. China has already captured the market on cost and quality parameters, has overcome tariff barriers by routing products through or setting up manufacturing in ASEAN and their formal entry into the FTA formation can sound the death knell of the ACE industry. The local component supply base in particular, which does not enjoy economies of scale nor financial benefits that their Chinese counterparts enjoy, such as lower cost of finance, export incentives, a better supply chain etc. will be enormously threatened.

Hence, scale is a fundamental prerequisite for the ACE manufacturing eco-system to become self-reliant and globally competitive. India has a captive domestic population to leverage scale, provided the right policies are in place.
 
It is to address these issues that CEAMA has chosen “Champions of Change: Impact of Increased Domestic Manufacturing”, in its fifth edition of ACE Dialogues. "Champions of Change", is G2B initiative of Niti Aayog inaugurated in 2017 that aims to accelerate growth, growth that will enable the government to deliver on its promise of “Sabka Saath, Sabka Vikas”. The reason for collaboration between government and the private sector is simple…..high growth rates can be achieved and sustained only when the private sector’s dynamism and innovative spirit is unleashed. ACE Dialogues is the perfect platform to explore how growth of the appliance and electronics sector can be accelerated and the benefits that can accrue to the sector, and indeed the nation, from sustained growth.