This is following the various incentives schemes that the government introduced this year, including the production-linked incentives (PLIs) for various electronics and related goods manufacturing
India’s domestic electronics manufacturing industry is expected to be worth nearly Rs 7 lakh crore (Rs 7 trillion), as it will see 30 per cent growth in the coming fiscal.
“The value addition from local manufacturing units is expected to go up to 25 per cent next year from 18 per cent at present. The government is aiming to grow overall electronics production in the country by 30 per cent to over Rs 6.9 lakh crore next year,” a senior Ministry of Electronics and IT (Meity) official told PTI.
This is following the various incentives schemes that the government introduced this year, including the production-linked incentives (PLIs) for various electronics and related goods manufacturing.
Alongside, the Meity has proposed a PLI scheme of about Rs 22,000 crore to promote wearables as well as enhance incentives for IT hardware manufacturers in the next financial year as it aims to increase electronics exports from India by 50 per cent.
According to industry body ICEA, whose members include Apple, Foxconn, Wistron, Lava and Vivo, mobile phone production in the country peaked at Rs 2.2 lakh crore in 2020-21 and is expected to cross Rs 2.75 lakh crore by March 2022.
“Chinese companies are only focussing on catering to the Indian market requirement. Therefore, they have not participated in the PLI scheme. We expect Indian companies to do well and become global champions,” the Meity official said.
The electronics manufacturing growth in the country remained almost between Rs 5,33,670 crore in 2020-21 and Rs 5,33,550 crore in 2019-20.
The import of electronics in 2020-21 reduced to around Rs 2.85 lakh crore from about Rs 2.9 lakh crore in 2019-20 due to an increase in local manufacturing of consumer electronics items especially LED television sets and electronic components.
However, the import in the IT hardware segment increased to around Rs 79,000 crore in 2020-21 from about Rs 68,400 crore in 2019-20.
The government has also made a third attempt to attract electronics chip makers in the country with Rs 76,000 crore incentive schemes spread over a period of six years and is confident of attracting 100 companies in the next 4 years under the package.
However, industry associations are still skeptical of the growth prospects as the supply chain is still hindered by the persisting chip shortage.