India takes on China, Vietnam in electronics manufacturing; eyes $300 billion in local production by FY26

NEW DELHI: India’s counterattack on China and Vietnam in electronics production should gain additional firepower.
Production is projected at $ 300 billion over the next four years, including $ 120 billion reserved for exports; expanding the grocery basket for incentives; specially created large industrial areas with modern equipment; and permits for factories that can hold up to 1 elbow of workers, with dormitories, kitchens, medical facilities and residential complexes.
The plan is to give scale to electronics production, which will ultimately lead to a strong ecosystem of suppliers, ample employment opportunities and global service.
IT and Electronics Minister Ashvini Vaishnau and Junior Minister Rajiv Chandrasekar presented a “Vision Document 2.0” prepared by their ministry and presented by the Indian Cellular and Electronics Association through its chairman Pankaj Mohindro.

Vaishnov said the government, which has already allocated nearly $ 17 billion over the next six years under four production-related incentive schemes (PLIs) (semiconductor and design; smartphones; IT hardware and components), will produce more categories. where will benefit. will be expanded for local production. These probably include hearing and wearable devices, industrial and automotive electronics, and telecommunications equipment.
The government wants the charge to come not only from global players such as Taiwan’s Foxconn and Wistron (both contracted by Apple) and Korea’s Samsung, but also from “domestic champions” such as Optiemus, Dixon and Lava.
Vaishnau said he had talked to the Ministry of Labor about setting up large factories that could have up to one thousand employees and have housing for workers.
He also said his ministry is allocating land for the construction of extensive integrated production areas (up to 1,000 hectares) with all the necessary facilities such as land, electricity, roads and built-in communications, which is largely in line with what is set aside. in China and Vietnam.
The industry welcomed the offer. “The plug-and-play model is really welcome. This removes problems with land acquisition, roads and infrastructure, electricity and communications, ”said Sunil Vachhani, chairman of Dixon.
Lava Chairman Harry Om Rai also said that local companies need to enter the world market while expanding production in India.
Minister Chandrasekar said that the growth of digital consumption and the diversification of global value chains will help achieve the goals.
The Chinese are strikingly absent
There were no Chinese players as participants or speakers in the mega-meeting of local and global electronics manufacturers.
Asked what role India sees for the Chinese in Indian electronics manufacturing, Junior IT and Electronics Minister Chandrasekar replied: “We don’t have much of a view … the concept of trust in value chains is an important attribute in the world after Covid and any investment and any investment partner that meets the criteria of trust can produce ”.

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