‘India’s electronics industry To Be $300 Billion Industry By 2025
Recently Ministry of Electronics and Information Technology (MeiTY) releases Vision Document (Volume-I) on “Increasing India’s Electronics Exports and Share in GVCs” Document released as part of MeitY’s vision 1000 Days for ESDM Sector towards achieving One Trillion Dollar Digital Economy. It said that India’s electronics industry would be worth $300 billion by the year 2025.
India’s total electronics exports account for only 0.34% of global exports, despite a share of 3.6 per cent in global electronics manufacturing.
- Global Value Chain (GVCs): Between 1-4 years, manufacturers should be encouraged to shift manufacturing capacity of finished products, sub-assemblies and components from countries like China, Vietnam, Japan, South Korea, etc. to India.
- Developing an Indian ecosystem within 5-8 years: Skill building and incentives should be provided to manufacture global subassemblies and components to supply GVCs for global consumption.
- There should be co-location (installation of equipment or resources) in GVCs for expansion, export, skill acquisition and creation of domestic ecosystem.
- Tariffs for inputs and policy-related operational burdens and delays should be reduced.
It is to be noted that earlier, three schemes were also announced to achieve the goals of the National Policy on Electronics 2019 Vision-
- Production Linked Incentive (PLI) Scheme for large scale electronics manufacturing.
- Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
- Electronics Manufacturing Cluster (EMC 2.0) Scheme.
Key challenges before the electronics sector: Disruptive impact of aggressive pricing by economically sound firms, matching the efficiency of MNCs, access to capital, knowledge and skills, etc. Lowering prices in an effort to eliminate predatory pricing competition.
Source – The Hindu