Indian electronics manufacturing to cross US$ 16 billion (Rs. 1.28 trillion) in the next fiscal: Mr. Rajeev Chandrasekhar

The Union Minister of State for Entrepreneurship, Skill Development, Electronics and Technology, Mr. Rajeev Chandrasekhar stated that the electronics manufacturing in the country is expected to cross US$ 16 billion (Rs. 1.28 trillion) in the next financial year. He said that the government is now going to widen the electronics manufacturing ecosystem with a new production-linked incentive scheme (PLI) for hearable-wearable, IT hardware, and component makers.

He asserted that the government would do 100% hand-holding of the component players to boost the local system.

The electronics components makers body, Electronic Industries Association of India (ELCINA) has requested the government to allocate US$ 10 billion (about Rs. 80,000 crores) 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 US$ 1.96 billion (Rs. 16,000 crores) in the Union Budget for 2023-24. According to ELCINA, the upgraded PLI will facilitate investments of around US$ 7.84 (Rs. 64,000 crores) with a targeted output of US$ 24 billion (about Rs. 1.95 trillion) for all components other than semiconductors.

On the other hand, 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.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.