Electronics manufacturing in the country is expected to cross Rs 1.28 lakh crore in the next financial year, Minister of State for Electronics and IT Rajeev Chandrasekhar has said.
The minister said the government is now going to broaden and widen the electronics manufacturing ecosystem with a new production-linked incentive scheme for hearable-wearable, IT hardware, and component makers.
“Electronics manufacturing as a whole, we see next year that we will at least do Rs 1.28 lakh crore. I have already said that we will see mobile phone production reaching Rs 1 lakh crore in 2023-24,” Chandrasekhar said.
There has been a focus on mobile phones because it is the fastest growing segment in electronics across the world, he added.
“Value addition in manufacturing is a function of scale. First, you need to hit the scale. The component industry is the one that does value addition. Components will not come if the scale of manufacturing is not there. The next stage of our PLI is to get components PLI, hearable-wearable PLI and the IT server PLI,” the minister said.
The government will do 100 % hand-holding of component players to boost the local ecosystem, he noted.
Electronics components makers body ELCINA has requested the government to allocate $10 billion (about Rs 80,000 crore) for eight years to boost the manufacturing of electronic components and key modules other than semiconductors.
It has sought a four-year extension to the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), with an increased outlay of Rs 16,000 crore in the Union Budget for 2023-24.
According to ELCINA, the upgraded PLI will facilitate investments of around Rs 64,000 crore with a targeted output of $24 billion (about Rs 1.95 lakh crore) for all components other than semiconductors.
The industry body has sought reinstatement of income tax relief for the investment made in research and development. It has also asked for a PLI scheme with a focus on domestic electronics manufacturing services companies.
India Electronics and Semiconductor Association (IESA) has requested the government to convert the PLI scheme into a design-led manufacturing scheme and impose an import duty of 10 % on any imported electronics equipment and assembled printed circuit board (PCB) to boost local manufacturing.