Need For The Identification Of Industrial Computer Industry By The Defense Sector

A nation's military strength is determined by its economic might. Industry provides the military with the wherewithal to fight the nation's wars. Since independence the policy relating to Strategic Defense Production has been evolving. For too long, India depended on foreign industries for its military hardware. The desire to achieve self-reliance has always been there. Constraints of technology and resources prevented the process from fructifying to the extent desired.

The first phase, was characterized by the State led industrialization. Since the era of liberalization, which began in 1991, the role of private sector and also that of competition, both domestic and international is playing a much greater role in the national economy.

The industry of industrial computers is a very vast industry. In India there are various industries that integrate the industrial computers for various industries. Industrial computers have become part of every business life and it is very important for every industry. Industrial computers are also called as Ruggedized systems. Industrial computers are the huge computers which are used primarily for process control and data acquisition.

Industrial computers offer features different from consumer PCs in terms of reliability, compatibility, expansion options and long term supply. These are less manufactured than the home PCs. A common category of industrial computers is the 19-inch rack mount from factor. Industrial computers are typically cost considerably more than comparable office style computers with similar performance.

Scope of Industrial Computers

India has a great scope for industrial computers. Industrial computers are not manufactured in India but are integrated in India for the various industries. Although Indian market for industrial computers are dominated by Taiwan companies but still there are many players in India that are giving huge competition to Taiwan companies for industrial computers. Most of the components are basically imported from Taiwan because of the price and quality. China is also provider for industrial computers but because of the low quality and short product life Indian companies does not much prefer buying components from the Chinese market. Germany and US are also providing the component and they are best at quality but due to high cost for their products Indian companies generally do not prefer buying these components from these countries.

Various Aspects of This Industry

Industrial computers are today required in most of the industry because of its technology, accuracy and maintainability. Most of the industries require these computers for data accuracy, good track of supply chain, maintain the quality of the product, lower the flaws in the production, etc. Industrial computers are present in cheaper rates in India than Germany and US.

Industrial computers are demanded by many of the industries like defense, automation, automobile, pharmaceutical energy, automotive, communication, etc. Advantech is the Taiwan based company that is dominating the Indian market for industrial computers followed by many other Taiwan based companies. The technology and the price are the major factors that are encouraging more import from the international markets. Indian market also provides best of customization facilities. The import and the custom duties are the main hurdles for the cost of the products. Indian government levies 7.5% to 10% on the import of these components that raises the overall cost for the product. Even the time taken during the custom clearance delays the delivery for the computers to its customers. No subsidy is provided for this industry and there is no support from the government for such industries. Exports of industrial computers are less than its imports. As Indian industry is less developed in technology and research and development is not much happening in this industry in India so the industries are lacking behind most of the countries like China, Taiwan, US, Germany, etc.

Most of the Indian companies buy components from Taiwan companies and give them competition for Indian market for industrial market. There is an increase in demand for industrial Computers in India due to the factors like privatization, flexibility, short product life cycle, cut throat competition among the various players for the product, etc.

Indian defense sector is more concentrating on the international market for industrial computers than Indian market. The reason behind this is the quality and the price that the international market provides for industrial computers are better than the Indian industries. Thus Indian companies for industrial computers are more concentrating on the other sectors than defense as there is greater demand from the industries like energy, automation, heavy industries, etc. thus the Indian industry for industrial computers are expanding and needs more exposure and support from the government and more research and development for the growth of this industry.

In India most of the companies are the integrator for the industrial computers because most of the components are not easily manufactured in India and they have to depend on the Taiwan companies for the various components for the integration of the industrial computers. Taiwan companies provide the components at lesser cost unlike US and Germany. Taiwan companies also provide the best of quality for the components so most of the companies prefer buying various components from these companies.

Certification of the Industrial Computers

Industrial computers that are used by the defense industry should be military grade and the quality is the main focus that should be most taken care of. Most of the companies that manufacture industrial computers should have ISO certification as well as also have certification from the defense sector as most of the computers are manufactured as project based and it should fulfill the standard of the expectation of the defense sector. The computers are mostly certified by the defense.

Financial aspects of Industrial computer industries

Industrial computers are very expensive as the cost that is involved in the whole process of integration of it depends on various factors like import duties, time, latest technology, etc. industrial computer that are integrated in India have a very high cost because of the time that is consumed for importing the components and the various taxes and tariffs that the suppliers have to pay on the import of the components. The current rate of import of these components is 10% and it may vary from component to component. Thus this is the major reason for the high cost of these computers.

There is no support from the government for such industries. No subsidy or any kind of intensive is provided for these industries. Indian government does not take any initiative for such industry protection. This industry depend on the international market for the components and they should be protected and taken care as there are many potential companies that can provide best quality of industrial computers and save the money that is drained out as import for the products. The government should identify the various industries and try to protect them from the foreign companies like Advantech, Portwell, etc.

Most of the Indian companies for industrial computers do not export its products except few of the companies like Pako, Pentagon, Simplex Systems, Futura Automation, etc. The major reason behind this is the competition that the companies from Taiwan, China, US, Germany based on quality and price I the major hurdle for Indian companies. Indian companies are best in the customization and quality but it still lacks behind when it comes to price for the product and the latest technology.

Conclusion

There is a huge scope in the field of industrial computers but not much interest is taken for this industry. There is a huge scope for employment in this industry. In India there are large amount of manpower available for this industry. There is specialized manpower that is available but it is not utilized properly for this industry. The innovative technology can give the best technology and also the various potential companies can hire the trained professionals for these industries so that it could give boast to this industry.

Although there is huge investment for defense industry but no initiative is take for such industries. These industries are not even identified by the government and have to struggle a lot for their identification. The competition with the international market for the product and no support from the government side makes the companies of industrial computers to remain unidentified in the industry of defense sector.

Future of The Industrial Computer Industry In India

There is a very bright future for industrial computer industry. The demand for such computers is increasing in many other sectors including the defense sector also. There is a huge demand for industrial computers in pharmaceutical industries and automation industries. The current trends for industrial computers are based on project and thus there is a greater chance for the increase of demand in the other sector.

The government support and the subsidy will enable this industry to expand more. The funding by the government can enable these industries to work more on R&D so that they could compete with their international competitors like Taiwan, US, Germany.

The collaboration with the other companies for various components will enable them has competitive advantage. The cost will be also reduced and this industry can provide better computers to defense industry at lesser cost than its competitors. Industrial computers have a bright future it needs government support and thus it can be also be counted as top most players for industrial computers.

Compiled By - Aparajita Ashwini