January 28, 2022
The adverse impact of the COVID-19 pandemic and its variants brought unforeseen and unprecedented challenges to the sector
The reduced target still aims for a 400% increase from the current level
India’s electronics manufacturing sector accounts for US$ 67billion and US$ 74 billion
The government has been advised to assist products that have “high potential" other than mobile phones and IT hardware
As per a vision document released by the industry body India Cellular and Electronics Association (ICEA), electronics production in the country is expected to reach US$300 billion by 2026. Although the National Policy on Electronics (NPE) 2019 had set a target of achieving a revenue of $400 billion by 2025, the adverse impact of the COVID-19 pandemic and its variants brought unforeseen and unprecedented challenges to the sector. It is estimated that the demand for electronic products in India will amount to approximately US$180 billion by 2025-26.
It must be noted that the reduced target still aims for a 400% increase from the current level, which will require promoting domestic champions and persistent policy initiatives to create a conducive electronics manufacturing ecosystem. The report also suggests that the government should not make any changes in the tax tariff without discussion with industry stakeholders.
Currently, India’s electronics manufacturing sector accounts for US$67 billion and US$74 billion, meaning the electronic sector’s output needs to quadruple over the next four years. The document also asked the government to assist products that have “high potential” other than mobile phones and IT hardware, which are already included in existing production-linked incentive schemes. High potential segments include wearables, LED lighting, and electronic components for electric vehicles.