December 4, 2020
India’s import of laptops has increased by 42 per cent (from US$ 2.97 billion to US$ 4.21 billion) in the last five years.
Making in India for the world will also create 5 lakh new jobs and an increase in cumulative inflow of foreign exchange of US$ 75 billion.
This will encourage industry players to set-up manufacturing facilities in India, and be instrumental to achieve ‘Atmanirbhar Bharat’
The manufacturing sector in India, anchored in superior digital infrastructure and 100 per cent FDI, is one of immense potential for growth and disruption
The India Cellular and Electronics Association (ICEA), an industry body with members like Apple, Xiaomi, and Motorola, has sought incentives from the government to manufacture printed circuit boards (PCBs) in India. In their report calling for making India a global hub for PCBs, they presented a US$109 billion export opportunity for the country over the next five years, if provided the right incentives.
India’s import of laptops has increased by 42 per cent (from US$ 2.97 billion to US$ 4.21 billion) in the last five years. 87 percent of this continues to come from China.
According to Pankaj Mohindroo, Chairman of the ICEA, “This presents an opportunity for India to ramp up the export of ‘Made in India’ laptops and tablets. Making in India for the world will give us a manufacturing value of US$ 100 billion by 2025. It will also create half a million additional jobs and increase cumulative inflow of foreign exchange to the tune of US$ 75 billion; and investment of over US$ 1 billion.”
The report suggests incentives focused on export-oriented manufacturing of laptops and tablets and calibrated focused policy interventions for the sector. This will encourage industry players to set-up manufacturing facilities in India, and be instrumental to achieve ‘Atmanirbhar Bharat’ and reduce dependency on China.
In August 2020, the Government of India announced Production Linked Incentive Schemes (PLIs) for large scale mobile and electronics manufacturing. With five years, an incentive of 4-6 percent will apply to goods produced that are under the target categories. In anticipation of rising demand for the aforementioned commodities by the year 2025, the PLIs are expected to create 300,000 employment opportunities and a 60 per cent increase in export volume. Value addition is expected to increase by 45-50 per cent for electronic components and 35-40 per cent for mobile phones.
The Manufacturing sector in India at large is one of immense potential for growth and disruption. Anchored in superior digital infrastructure and 100 per cent FDI, the sector is also conducive for foreign investment and private sector participation. Under the aegis of ‘Atmanirbhar Bharat’, the sector can look towards making significant progress in coming years.