NEW DELHI:
India can reach $300 billion worth of electronics manufacturing and exports by 2025-26 — nearly four times from the current $67 billion — if specific product segments with high potential for scale are shortlisted and catered to by way of incentives and policy measures, a new IT Ministry report showed on Monday.
The Vision Document 2.0, prepared by the Ministry of Electronics and Information Technology (MeitY) and presented by the India Cellular & Electronics Association (ICEA), emphasised that such products segments cover mobile phones, Information Technology hardware (IT hardware), consumer electronics, wearables and hearables, LED lighting, electronic components in electric vehicles (EVs) etc.
“To witness India’s top-ranking globally in the electronics industry, we need tactical and strategic steps for each product line and supportive directions to our domestic players/Indian champions to meet our Prime Minister Narendra Modi’s ‘Aatmanirbhar Bharat’ vision,” ICEA Chairman Pankaj Mohindroo said.
The electronics manufacturing industry had grown from $37.1 billion in 2015-16 to $67.3 billion in 2020-21. However, Covid-19 related disruptions impacted the growth trajectory in 2020-21 and led to a decline in the manufacturing output to $67.3 billion.
According to the document, there has been a complete shift in strategy which goes beyond the vision of import substitution to “Make in India for the World”.
This fresh outlook is aimed at transforming India’s manufacturing prowess by focusing on competitiveness, scale and exports.
Furthermore, continuing on the path of import substitution, India’s domestic electronics market is estimated to reach at best $150-180 billion from the current $65 billion over the next 4-5 years.
“Thus, exports of $120-140 billion are critical to reach the $300 billion mark for electronics manufacturing. This, in turn, is key for the $5 trillion economy, $1 trillion digital economy, and the $1 trillion export target envisaged by MeitY and the Ministry of Commerce and Industry, respectively,” the Vision Document 2.0 read.
The increasing labour costs in China, the geo-political trade and security environment, and the Covid-19 outbreak are compelling many global electronics majors to look at alternative manufacturing destinations. (IANS)
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