News Brief

India's Electronic Manufacturing Set To Double To $250 Billion In Five Years: Report

Swarajya Staff

Jun 16, 2024, 05:07 PM | Updated 05:07 PM IST

(Representative image)
(Representative image)

India's electronic manufacturing is expected to double in the next five years, according to a report from The Economic Times.

The sector is projected to reach around USD 250 billion during this period, up from the current USD 125-130 billion in electronic exports.

The government aims to address unemployment by creating jobs in the electronic manufacturing sector, which currently employs 2.5 million people. The target is to double this number to around 5 million jobs in the next five years.

"Our focus remains the same on providing services to digital technology, our focus remains on getting large-scale electronics manufacturing. Those focus remain exactly and those target goals will only get accelerated," said Ashwini Vaishnaw, Minister for Electronics and Information Technology.

As per the same report, India is already transitioning from import substitution to becoming self-reliant (Aatmanirbhar) and an export-led manufacturer, particularly in segments like mobile phones. For laptops, India is in the phase of achieving self-reliance.

The Indian government has allocated Rs 760 billion for electronic manufacturing through various incentive schemes. Currently, India's per capita electronic consumption is one-fourth of the global average.

China and Hong Kong account for a significant portion of India's electronic imports, representing 44 per cent and 16 per cent respectively.

On the export front, mobile phones and Electronic Control Units (ECUs) dominate, with the United States and the UAE being the largest export destinations.

Experts have highlighted that India's electronic manufacturing sector is undergoing a transition, strengthening the country's position as a global electronics manufacturing hub.

To position India as a global hub for electronic manufacturing, the government has announced several schemes, including the Production Linked Incentive Scheme (PLI) for large scale electronics manufacturing, PLI for IT hardware, the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and the Modified Electronics Manufacturing Clusters Scheme (EMC 2.0).

Additionally, the government has introduced the Semicon India Program with an incentive outlay of USD 10 billion, aiming to develop a sustainable semiconductor and display ecosystem. This program is set to establish India as a global hub for semiconductor and display manufacturing.

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