Indian 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.
We've already reached a very good level of electronics manufacturing; today we've around 5.5 lakh crores of electronics manufacturing in country. This was unthinkable a few years back. Now we've taken aim of US$300, which is about 22 lakh crores: Electronics Min Ashwini Vaishnaw pic.twitter.com/uPloGjLOA3
— ANI (@ANI) January 24, 2022
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.
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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 and diversifying their supply chains.
"India is one of the leading contenders for alternate solutions for global electronics companies. The electronics sector has the potential to become one of the top exports of India in the next 3-5 years. Electronics exports may account for significant contributions to the Indian economy in terms of foreign exchange earnings and employment generation," said the document.
The National Policy on Electronics (NPE) 2019 had earlier set a target of achieving a turnover of $400 billion by 2025.
However, the Covid-19 pandemic brought with it unforeseen andAunprecedented challenges.
"In light of this, the NPE 2019 targets for electronics production in 2025-26 at $300 billion appears to be more realistic considering the disruption on account of Covid-19 in the past 18 months which has been aggravated with the new variants of the Covid-19 virus such as the Omicron," according to the document.
When it comes to mobile phones, India's domestic mobile sales are in line with industry estimates and likely to grow faster in the coming few years due to increasing digital lifestyle and Covid-related disruptions.
"This report captures all the key points and production projections for the various products that will lead India's transformation into a $300 billion electronics manufacturing powerhouse," said Mohindroo.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
