Exports are expected to increase to $120bn by 2026 from $15bn in 2021-22, says Chandrasekhar
Ministry of Electronics and Information Technology, in association with ICEA, has released a 5-year roadmap and Vision Document for the electronics sector, “US$300 billion Sustainable Electronics Manufacturing & Exports by 2026,” and seeks new markets and customers. Competition with China and Vietnam in the global markets is on the cards.
The Vision Document makes a strong recommendation on the need to focus on aggregate domestic value addition in the electronics sector, as India transforms from its current state to one that is gearing to compete with the likes of China and Vietnam.
It also details the importance of the key role Indian champions will play in addition to global companies – both of whom are already part of the PLI Schemes.
The domestic market is expected to increase to US$180 billion over the next five years from US$65 billion. This will make electronics amongst India’s 2-3 top ranking exports by 2026.
Of the US$300 billion, exports are expected to increase to US$120 billion by 2026 from the projected US$15 billion in 2021-22, said Rajeev Chandrasekhar, Minister of State, Electronics & IT and Skill Development & Entrepreneurship.
The Ministry is focusing on broadening and deepening of electronics industry in India, he pointed out.
Released on 24 Jan 2022, the roadmap is the second volume of a two-part Vision Document. The first, “Increasing India’s Electronics Exports and Share in GVCs” was released in November 2021.
The report provides a year-wise break-up and production projections for the various products that will lead India’s transformation into a US$300 billion electronics manufacturing powerhouse from the current US$75 billion.
Chandrasekhar said, “New markets, new customers and being a player in Global Value Chain (GVC) is the goal and mission of the 2nd phase. This volume along with the 1st Volume on electronics manufacturing, represents an excellent example of goal setting, detailed strategy making after hours of deep engagement between government and industry.”
Amongst the key products that are expected to lead India’s growth in electronics manufacturing include Mobile Phones, IT Hardware (laptops, tablets), Consumer electronics (TV and audio), Industrial electronics, Auto electronics, Electronic components, LED Lighting, Strategic electronics, PCBA, Wearables and hearables as well as Telecom equipment. Mobile manufacturing that is expected to cross US$100 billion annual production, up from the current US$30 billion, is expected to constitute nearly 40% of this ambitious growth.
Speaking at the report launch, Ashwini Vaishnaw, Minister of Electronics & Information Technology, addressed the industry’s apprehensions over the issue of dual regulations in mobile manufacturing.
He also clarified that telecom department is not going to enter into mobile manufacturing and the mobile manufacturing regulatory regime will remain same.
The five-part strategy to reach the US$300 billion goal, based on an “all of the government” approach, sharply focuses on broadening and deepening electronics manufacturing in India. This would be achieved by building competitiveness and attracting global electronics manufacturers and brands as well as shifting and developing sub-assemblies and component ecosystem, building a design ecosystem, nurturing Indian champions and steadily removing cost disabilities faced by India.
The US$300 billion electronics manufacturing comes on the back of US$10 billion PLI Scheme announced by the government to propel forward the Semiconductor and Display ecosystem. The government has committed nearly US$17 billion over the next 6 years across four PLI Schemes – Semiconductor and Design, Smartphones, IT Hardware and Components.
The report seeks a competitive tariff structure on electronic components and removal of all regulatory uncertainty to put India on the path to US$300 billion electronics manufacturing.
The report recommends a “winner takes all” strategy backed by economies of scale and global competitiveness, new and revised incentive schemes for some sectors, and the need to address issues of sustainability and ease of doing business. fiinews.com
