India electronics industry is worth $140 billion in 2017 and is projected to grow to $400 billion by 2022, according to data shared by ELCINA.
By 2020, the industry worth is realistically expected to reach a target of $280 billion based on the current exchange rate.
“In the overall electronics market, consumer electronics share is 29.7% in India out of which a major contributor is the mobile industry,” said Rajoo Goel, Sectretary General, ELCINA to ET.
However, manufacturing is one of the biggest challenges for the India electronics industry and has a major role to play in the growth of the industry.
For the ESDM industry, challenges such as lack of manufacturing ecosystem, lack of value chain, reduced export incentives and slow investments in the sector, are slowing down the growth.
Also, there is a need to further incentivize component manufacturing in the country since the component industry has been seeing growth of less than 6-8% annually. For components adding value of 30% or more should at least get subsidy of 10%, suggested Goel.
As part of recommendations for the new policy on electronics, ELCINA suggested that for all products notified under differential duty structure and growth driving products, PMP (Phased Manufacturing Programme) needs to be developed for progressively incentivizing domestic manufacturing of components or parts. The PMP should be shared in advance with the stakeholders for planning investments.
By Baishakhi Dutta
