India’s electronic manufacturing capacity set to reach center stage, Make it global export hub
This is the direct result of the government’s focus on securing the electronics and IT sectors, knowing that these are important sectors that can drive value
According to sources in the Ministry of Electronics and Information Technology, India’s electronic manufacturing is set to double in the next five years. Electronic Manufacturing is likely to reach around $250 billion in the next 5 years, according to the sources. This growth trajectory has India well-positioned to turn into a mainstream stop for electronic manufacturing globally.
Currently, India’s electronic exports stand at $125 to $130 billion. However, with a projected annual growth rate of 30%, India is set to witness an additional production worth ₹11.5 lakh crore during this period. This optimistic forecast is supported by recent data from Invest India, which showed a 25.80% increase in electronic goods exports in April 2024 compared to April 2023.
Government Initiatives Boosting Electronic Manufacturing
This is the direct result of the government’s focus on securing the electronics and IT sectors, knowing that these are important sectors that can drive value. ‘Make in India’ and ‘Digital India’ campaigns, alongside the introduction of favourable policies for the semiconductor manufacturing have laid a solid foundation for the industry’s expansion. The Semicon India Program has been introduced by the government to develop sustainable semiconductor and display ecosystems.
The ministry has outlined its vision for sustaining growth in semiconductors and electronics as its main aim over the next five years. But this growth is not just about the numbers on paper. There’s a very significant economic impact being outlined here.
Doubling the electronic manufacturing industry will create ’n’ number of job opportunities, reduce dependance on imports and strengthening India’s position in global supply chains. It will also align with India’s objective to become self-reliant or ‘Atmanirbhar,’ becoming independent from seeking help rather than trading it.
However, despite the positive outlook, there are several challenges looming on the horizon. Scaling up production capacities, ensuring a steady supply of raw materials and maintaining competitive pricing in the face of global competition are all important factors that must be considered. It will also be crucial to maintain research and development within the bounds of the nation to sustain innovation and staying in the loop of technological trends.
The government aims to double the jobs in the electronic manufacturing sector from 25 lakhks to around 50 lakh jobs. “Our focus remains the same on providing services to digital technology, our focus remains on getting large-scale electronics manufacturing. Those focus remain exactly and those target goals will only get accelerated,” Ashwini Vaishnaw, Minister for Electronics and Information Technology, said.
Mobile phones and Electronic Control Units (ECUs) dominate India’s electronic exports, currently. In this sector, among mobile exporters, India is already transitioning from an importer to becoming an exporting hub.
The government has outlined several incentive schemes to provide an allocation of $750 billion for the development of electronic manufacturing within the country.
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