Home / Industry / Manufacturing /  Government to push electronics manufacturing to $300 billion by 2026
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NEW DELHI : The government on Tuesday released a vision document, which envisages electronics manufacturing in India to quadruple to $300 billion by 2026.

The document, released by the information technology minister Ashwini Vaishnaw and minister of state for electronics and IT Rajeev Chandrashekhar, lays out the roadmap for electronics manufacturing in India in the next four years.

The report was drafted by the India Cellular and Electronics Association (ICEA), the top industry body for electronics firms in the country.

“$300 billion of manufacturing and $120 billion of exports is a significant milestone that we’re setting out. We can, obviously, argue whether this is a base-level target, but it is clear that digital adoption and consumption in India is far outpacing manufacturing of digital products in India," said Chandrashekhar. “It should be our endeavour to create enough momentum to bridge that and converge at some point down the road, where our consumption and production of digital products and services converge in terms of our ability to serve our own needs," he added.

Vaishnaw said that the industry’s concerns around dual regulation by the information technology and telecom ministries would be addressed. He added that the telecom department would not enter into mobile manufacturing regulation. “It will continue to remain the light-touch regulation that is currently in place, and that regime is not going to change," he said.

He also said that discussions had taken place with the labour ministry to facilitate the functioning of large factories that can hire 40,000 to 100,000 workers. He added that the government is also taking steps to create basic infrastructure for industrial zones and has identified at least three locations where this can be done. He also asked the industry to help identify more areas where such industrial zones can be created. “Once we create one, I’m sure all other states may compete and will try to create similar zones," he said.

“The primary short-term strategy must revolve around incentivization of scale in the next 1,000 days (2025-26). An increase in scale may set the stage for India to become a major value addition player subsequently. After the initial 1,000 days, incentivization of value addition may be prioritized," the document said, adding that India will have to attract global manufacturing players and create “Indian champions" that will add to its share in the global manufacturing space.

According to the Vision Document, India’s electronics manufacturing sector currently stands at between $67billion and $74 billion, which means it needs to quadruple in the next four years. The document asked the government to encourage manufacturing products that have “high potential" other than mobile phones and IT hardware, which are covered by existing production-linked incentive schemes. The high potential segments include wearables, LED lighting, and electronics components in electric vehicles.

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