Industry body ICEA notifies that a yearly growth of 20-22 percent of electronics manufacturing is required to achieve the estimated target by 2030.
In an effort to achieve PM Modi’s ambitious target of $500 billion electronics production by 2030, an yearly growth of 20-22 percent of electronics manufacturing is required in the country, claims industry body India Cellular and Electronics Association (ICEA). Pankaj Mohindroo, chairman at ICEA said that in FY24, the entire volume of electronics production in India stood at $115 billion, out of which, $52 billion was from mobile phones production.
In regards to the visionary target, the apex public policy think tank body Niti Aayog revealed that out of the total $500 billion production, $350 billion of share is expected from the finished items, and $150 billion from the components manufacturing. As India still outsources 80 percent of key raw materials and components from China, the union government is likely to announce a separate components manufacturing Production Linked Incentive (PLI) scheme worth Rs 40,000 crore. The apex body also believes that the expected target by 2030 would further boost employment to 5-6 million people.
In this scenario, the total exports of electronics items are anticipated to reach $240 billion and escalation of domestic value addition to more than 35 percent. The target also requires India to be actively part of the global value chain (GVC) and also increase global partnerships across design, production, marketing and distribution. ICEA is reportedly working on a detailed action plan, which will help in achieving the target. By the end of this month, the detailed plan will be presented before the Finance Ministry and PM Office, added Mohindroo.
In a press conference, ICEA chairman stated that the industry is very optimistic to achieve the target of $300 billion by 2026 and to achieve the target by 2030, some imperative sectors such as clean tech, solar power, etc. will have to contribute significantly in the electronics value chain. Before the decade ends, ICEA calculates mobile phone production to grow to $180 billion. In order to grow the entire electronics manufacturing ecosystem, more focus is required on escalating production on some key sectors such as consumer electronics, hearables and wearables, auto, and medtech.
Although electronics manufacturing has grown exponentially over the years, it contributes only 4 percent of the international market, and that also mostly assembly. The $4.3 trillion worth global electronics market is spearheaded by China, Taiwan, USA, South Korea, Malaysia, and Vietnam. In this scenario, India’s global exports are valued at $25 billion annually, which is less than 1 percent of the global share.
