The centre aims at 60-80% local value addition in Information Technology (IT) hardware in 5-10 years
- IBEF
- August 18, 2023
The center has asked industries operating in India to execute new production techniques, such as Surface-Mount Technology (SMT) lines, to increase the local value-added percentage. It has started discussing how international electronics companies may increase local value addition in goods made in India by 60-80% over the next five to 10 years.
According to an industry executive who attended a meeting with representatives of the Ministry of Electronics and Information Technology, the government is requesting that the business go beyond component assembly and produce printed circuit boards (PCBs) locally. Local value addition will significantly increase with the local manufacture of motherboards.
According to some industry experts, the development of IT hardware manufacturing facilities is still in its infancy. The overall development of such facilities could take more than 24 months.
An executive stated that most laptop manufacturers right now get the components in strips that need to be soldered on the circuit board. The industry is now looking at setting up SMT lines in India. Some businesses that have applied for the IT hardware Production Linked Incentive (PLI) scheme have already started producing PCBs. Different businesses are skilled at localizing these components. India-specific sockets, keycaps, and panel covers are produced there.
According to the PLI scheme for electronics and hardware, applicant firms can get additional incentives based on the percentage of localization that they implement.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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