The Department for Promotion of Industry and Internal Trade (DPIIT) shared list of 24 key sectors it plans to boost local manufacturing in
The Department for Promotion of Industry and Internal Trade (DPIIT) has asked various ministries to formulate plans for boosting domestic manufacturing of goods in the 24 key areas identified by it. The government of India is aiming to make India a self-reliant country in these segments. Boosting exports and becoming a global supplier, include the focus areas.
While electronics has been identified as a key sector, several other sectors identified might also have a direct connection with the electronics sector. These include domestic manufacturing of toys, industrial machinery and auto parts.
The bill of importing electronic components
Out of Rs 1.15 trillion worth of electronics components that India imported in 2019-20, 37 per cent were imported from China. Sanjay Dhotre, minister of State for Communications and Electronics and IT, revealed these numbers recently in a written reply in Rajya Sabha.
“The shutdown of factories for about two months has impacted the domestic electronics manufacturing sector. According to the India Electronics and Semiconductor Association (IESA), there will be production loss of 20-25 per cent in 2020-21, compared to 2019-20,” the minister had said.
The minister, citing data obtained from the Directorate General of Commercial Intelligence and Statistics (DGCI&S), noted that India exported smartphone components worth Rs 56,039 crore during 2019-20. Out of the total amount, smartphone components worth Rs 25,441 crore were exported from China.
The total electronic component imports in India during 2019-20 was Rs 1,15,558 crore, out of which, imports from China was Rs 42,983 crore. The ministry of commerce and industry has recently constituted an Empowered Group of Secretaries to provide support and facilitation to investors for investing in India and to boost growth in key sectors of the economy.
This group is being referred to as EGoS, and EGoS, as per the government, shall identify potential investors/organizations, make recommendations to the Ministry/Department to promote investment, facilitate hand holding of investors, examine and suggest ways to attract more investment in greenfield projects.