- Mobile phones, industrial electronics and strategic electronics are expected to experience substantial growth
- The total electronic component market in the country was estimated to be around $39 billion
Electronic Industries Association of India (ELCINA) has recently requested the Indian government to introduce a production-linked incentive (PLI) scheme for the non-semiconductor or computer chip sector.
In the fiscal year 2021-22, imports accounted for a significant 68% of the country’s $39 billion electronic component market, raising concerns about domestic production, shared ELCINA in a report.
Speaking at the 48th ELCINA Award Ceremony, Atul B Lall, the new President of the organisation and Vice Chairman and Managing Director of Dixon Technologies, said that while the government’s scheme for devices has been notably successful, there is an urgent need to extend similar incentives to the semiconductor sector. Lall stressed the importance of government intervention in fostering growth in the non-semiconductor component sector.
The main focus area in the electronic industry highlighted by ELCINA is mobile phones, consumer electronics, industrial electronics, and computer hardware, collectively constituting about 85 per cent of the demand in India. According to ELCINA, mobile phones, industrial electronics (driven by the rise of electric vehicles), and strategic electronics are expected to experience substantial growth in the near future.
Previously, the government initiated the “Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors” (SPECS) to support domestic manufacturing of electronic components and semiconductors and strengthen the country’s electronics manufacturing ecosystem.
The government has also announced the India Semicon Programme. This programme offers an incentive of Rs 76,000 crore to attract investment in the computer chip segment. Micron, a US computer memory chip manufacturer, has initiated the construction of its assembly and testing facility in Gujarat, India, and is also considering two additional significant projects.