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India’s Roadmap To Becoming A Global Leader In Electronic Manufacturing: Policies, Progress, And Prospects

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Mr Rajiv Batra, President, Rabyte

India’s electronic manufacturing sector is poised for significant growth in the coming years, driven by ambitious government initiatives and strategic economic policies. Currently employing around 25 lakh individuals, the sector is set to double its workforce to approximately 50 lakhs within the next five years, aiming to alleviate unemployment concerns and bolster economic stability.

Under the leadership and vision outlined by Mr. Ashwini Vaishnaw, Hon’ble Minister for Electronics and Information Technology, India’s focus remains steadfast on advancing digital technologies and scaling up large-scale electronics manufacturing. The country has already made strides in segments like mobile phones, transitioning from import dependency to self-reliance (Aatmanirbhar) and emerging as a competitive force in global markets. Similarly, efforts in the laptop sector are underway to enhance domestic manufacturing capabilities.

Key to India’s strategy are substantial government incentives, including an allocation of Rs 760 billion towards electronic manufacturing. These incentives are designed to support initiatives such as the Production Linked Incentive (PLI) schemes for both large-scale electronics and IT hardware, as well as programs aimed at promoting the manufacturing of electronic components and semiconductors.

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In terms of global trade, India is recalibrating its electronic exports, with mobile phones and Electronic Control Units (ECUs) prominently featured. Major export destinations include the United States and the UAE, reflecting India’s increasing role in the global electronics market.

Despite these advancements, challenges remain, particularly in reducing dependence on imports from China and Hong Kong, which currently constitute a significant portion of India’s electronic imports. However, with proactive measures and targeted investments, India is strategically positioned to become a global hub for electronic manufacturing.

The Semicon India Program exemplifies this forward-looking approach, with a substantial USD 10 billion incentive aimed at fostering a sustainable semiconductor and display ecosystem within the country. This initiative not only underscores India’s commitment to technological innovation but also enhances its competitiveness in global supply chains.

As India navigates through this transformative phase in electronic manufacturing, the sector’s growth promises to drive economic development, create numerous job opportunities, and catalyze technological innovation across the nation. With continued government support and industry collaboration, India is well on its way to realizing its vision of becoming a global leader in electronics manufacturing.


Author: Mr Rajiv Batra, President, Rabyte. Views are personal news and data sources online.

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