The Ministry of Electronics and Information Technology, in association with ICEA, released a 5-year roadmap and Vision Document for the electronics sector today, titled “$300 bn Sustainable Electronics Manufacturing & Exports by 2026.” This roadmap is the second volume of a two-part Vision Document – the first of which titled “Increasing India’s Electronics Exports and Share in GVCs” was released in November 2021.
This report provides a year-wise break-up and production projections for the various products that will lead India’s transformation into a US$300 billion electronics manufacturing powerhouse, from the current US$75 billion.
Amongst the key products that are expected to lead India’s growth in electronics manufacturing include Mobile Phones, IT Hardware (laptops, tablets), Consumer electronics (TV and audio), Industrial electronics, Auto electronics, Electronic components, LED Lighting, Strategic electronics, PCBA, Wearables and hearables, and Telecom equipment.
Mobile manufacturing that is expected to cross US$100 billion annual production – up from the current US$30 billion – is expected to constitute nearly 40% of this ambitious growth.
Ashwini Vaishnaw, Union Minister of Electronics & Information Technology, addressing industry’s apprehensions over the issue of dual regulations in mobile manufacturing clarified that the telecom department is not going to enter into mobile manufacturing and the mobile manufacturing regulatory regime will remain the same.
Speaking on the occasion, Rajeev Chandrasekhar, Minister of State, Electronics & IT, said that Ministry is focusing on broadening and deepening of electronics industry in India in line with Prime Minister’s recent statement at World Economic Forum, where he said that India is emerging as a reliable and trusted partner in value chains.
Talking about the objective of the volume-2 of the vision document released, Rajeev Chandrasekhar, said, “New markets, new customers and being a player in Global Value Chain (GVC) is the goal and mission of the 2nd phase. This volume along with the 1st Volume on electronics manufacturing, represent an excellent example of goal setting, detailed strategy making after hours of deep engagement between government and industry”.
He further added that the numbers in the 2nd Volume of vision document confirms that there is a real opportunity in the electronics sector, driven by 2 factors: growth of digital consumption and growth and diversification of global value chains.
The domestic market is expected to increase from US$65 billion to US$180 billion over the next 5 years. This will make electronics amongst India’s 2-3 top ranking exports by 2026. Of the US$300 billion, exports are expected to increase from the projected US$15 billion in 2021-22 to US$120 billion by 2026.
The five-part strategy to reach the US$300 billion goal, based on an “all of the government” approach, sharply focuses on broadening and deepening electronics manufacturing in India.
This, by building competitiveness and scale by attracting global electronics manufacturers/brands, shifting and developing sub-assemblies and component ecosystems, building a design ecosystem, nurturing Indian champions and steadily removing cost disabilities faced by India.
