Get All Access for $5/mo

The Indian Hardware Renaissance is Here Tailwinds are stronger than ever; making the country a promising force in the league of global hardware innovators

By Aayush Rai

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

graphicstock

As Indians, we are proud of our "jugaad' (quick fix) skills. However, the same approach has long been a barrier to the emergence and growth of the country's hardware startup ecosystem. Traditionally, India has been the innovation bed for software focused startups, while the hardware segment of the Indian startup ecosystem has been lagging. However, things may not remain the same in the coming days. Here is why things are much brighter for hardware innovation.

  1. The New Hardware is Smarter: Till about a few years ago, the hardware industry was all about giant factories manufacturing products. Given that it was easily copied, hardware got easily commoditized and the manufacturers with the lowest cost and big scale of operations won. Modern day hardware products are about combining hardware with intelligent software. These innovative products powered by artificial intelligence, advanced analytics and the processing power of cloud allow Indian hardware startups to play on their strength that is to build great intelligent software which not only distinguishes them but also acts as a layer of defensibility to command a high premium.

  2. Distribution is Easier: Before the e-commerce boom in India, distributing a hardware product for a startup was a nightmare. Imagine a small startup trying to place their products in stores or thousands of pharmacies and the challenges of inventory and logistics associated with it. With the growth of e-commerce, customers can buy a product online and the logistics can be managed by the e-commerce company or a logistics company. This helps give the startup a nationwide reach without having a complex distribution chain or a large inventory. Therefore, those who were looking to provide cutting edge hardware solutions can now focus on innovation and not bother about distribution initially.

  3. Funds are not so Dire- A prototype of a software startup can be built by a few engineers out a small room and validated by early customers. This makes raising capital easier because software companies can prove the product and market adoption to investors early on. On the contrary, hardware startups need significant upfront effort and investments to even prototype – leave apart taking it to production and testing market demand. Hence, hardware-based ideas in India couldn't take off due to lack of patient capital in the early stages. However, the scenario is changing with a fledging Angel Investor ecosystem who are ready to take large bets. Most VC funds in India are looking for deep-tech investments and their commitment to the hardware sector has grown substantially in the last 3-4 years.

  4. Access to Talent- Today, hardware devices are no longer dumb boxes, integration of software is making them intelligent. This means that hardware firms are in need of software and hardware tech talents simultaneously. India already produces some of the most talented software engineers in the world. For hardware skills, we are taking help of foreign consultants for training and development which has been made easier by the digital collaboration.

The other major talent shift we are seeing in today's time is reverse brain drain led by the growth of tech firms in India. Engineers who have studied in foreign universities are coming back as Indian tech firms provide them with exciting projects opportunities. This is keeping up the momentum of tech innovation in India.

With all the tailwinds, India is set to go through a hardware renaissance. However, we needn't forget that we do not become another Germany or China in terms of hardware innovation, but build New India. After all, it is not always about "jugaad.'

Aayush Rai

Co-founder and CEO, Inito

Science & Technology

Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

Facing resistance to new technologies in the educational process is nothing new, and AI is no exception. Yet, this powerful tool is set to overcome these challenges and revolutionize education, preparing students and professionals for a future of unparalleled efficiency and personalized learning.

Growing a Business

How to Determine The Ideal Length of Your Marketing Emails Your Customers Will Actually Read

Wondering how long your marketing emails should be? Here's what consumers say — so you can send them exactly what they like.

Business News

A Former Corporate Lawyer Now Makes Six Figures on YouTube — Here's How She Does It

Here are the secrets to starting and growing a successful YouTube channel, according to a YouTuber with millions of subscribers.

Business News

New Southwest Airlines Major Investor Wants to Force Out CEO, Slams Company's 'Stubborn Unwillingness to Evolve'

Elliot Investment Management announced a $1.9 billion stake in the Dallas-based Southwest Airlines on Monday and is urging shareholders to vote for new leadership.

Business News

Elon Musk Threatens to Ban Employees from Using Apple Products, Says Will Lock Devices in 'Cages'

The Tesla founder sounded off on X following Apple's 2024 Worldwide Developer Conference on Monday.