The Ministry of Electronics and Information Technology on Monday released a five-year roadmap and vision for the electronics sector entitled “$ 300 billion in sustainable electronics manufacturing and exports by 2026.”
According to a press release issued by the ministry, the roadmap, published jointly with the Indian Cellular and Electronics Association (ICEA), is the second volume of a vision document consisting of two parts – the first of which is entitled “Increasing Exports and Shares” India’s electronics in GVCs ”was released in November 2021.
“This report contains annual estimates of the breakdown and production of various products that will lead to the transformation of India into a power plant to produce electronics worth $ 300 billion from the current $ 75 billion,” the release said.
Key products that are expected to increase electronics production in India include mobile phones, IT hardware (laptops, tablets), consumer electronics (television and audio), industrial electronics, automotive electronics, electronic components. LED lighting, strategic electronics, PCBA, wearable and audible devices, and telecommunications equipment. Mobile phone production, which is expected to exceed $ 100 billion a year – more than the current $ 30 billion – is expected to account for nearly 40 percent of this ambitious growth, ”the statement added.
Ashwini Weisnau, Minister of Electronics and Information Technology of the Union, congratulated and praised the entire team of the Ministry of Electronics and Information Technology for their efforts to publish documents and policy items with such astonishing speed. During the event, Vaishnau also touched on some points raised by industry leaders during his recent engagement with him. Addressing the industry’s concerns about the issue of dual regulation in mobile production, the Minister clarified that the Department of Communications is not going to enter the production of mobile communications, and the regime of regulation of mobile production will remain the same.
Speaking on the occasion, Rajiv Chandrasekar, State Minister for Electronics and IT and Skills and Entrepreneurship Development, said the ministry is focusing on expanding and deepening the electronics industry in India in line with a recent Prime Minister’s statement at the World Economic Forum where he said that India is becoming a reliable and trustworthy partner in value chains.
Speaking about the purpose of Volume 2 of the vision document released today, Chandrasekar said: “New markets, new customers and participation in the Global Value Chain (GVC) is the goal and mission of Phase 2. This volume together with the 1st Electronics Production Volume He added that the figures in Volume 2 of the Vision Paper confirm that there are real opportunities in the electronics sector due to two factors: the growth of digital consumption. and the growth and diversification of global value chains.
The domestic market is expected to grow from $ 65 billion to $ 180 billion over the next 5 years. This will make electronics one of the 2-3 leading export destinations of India by 2026. Exports are expected to increase from $ 300 billion from the projected $ 15 billion in 2021-22 to $ 120 billion by 2026.
The five-part strategy to achieve the $ 300 billion goal, based on the “all government” approach, is sharply focused on expanding and deepening electronics manufacturing in India. This is due to increasing competitiveness and scale by attracting global manufacturers / brands of electronics, changing and developing components and ecosystem components, creating ecosystem design, educating Indian champions and constantly eliminating the limited costs facing India.
The $ 300 billion electronics industry is based on a $ 10 billion PLI scheme announced by the government to promote the semiconductor and display ecosystem. The government has allocated nearly $ 17 billion over the next 6 years to four PLI schemes – semiconductor and design, smartphones, IT devices and components. The Vision document strongly recommends the need to focus on aggregate domestic value added in the electronics sector as India moves from its current state to a state that is preparing to compete with China and Vietnam. It also details the key role that Indian champions will play in addition to global companies – both of which are already part of PLI schemes.
The report seeks a competitive tariff structure for electronic components and the elimination of all regulatory uncertainty to put India on the path to electronics production of $ 300 billion. The report recommended a “win-win” strategy, building on economies of scale and global competitiveness, new and revised incentive schemes for some sectors, and the need to address sustainability and ease of doing business.
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