Govt aims ₹24 lakh crore electronics manufacturing capability by 2026, says minister
As of September 2022, the PLI scheme for Large-Scale Electronics Manufacturing (LSEM) has attracted investment of ₹4,784 crore
PremiumUnion Minister of State for Electronics and IT Rajeev Chandrasekhar said that the government is aiming to increase electronics manufacturing capability to ₹24 lakh crore by 2025-26. He said the initiative would create 10 lakh jobs.
Speaking at a function in Bengaluru, the minister said the country is today at an inflection point - the most exciting period in its history - and the present generation of students is the luckiest generation in independent India’s history.
"...target of the Narendra Modi Government is to increase electronics manufacturing capability to ₹24 lakh crore by 2025-26, which will also help create over 10 lakh jobs," an official statement quoted him as saying.
He said that there are more than 90,000 startups, including 110 unicorns, in which young Indians are playing a big part.
The minister said that at least 15 lakh young Indians from Karnataka will be given training in industry-relevant future-ready skills.
Recently, the Centre approved another tranche of production-linked incentive (PLI) scheme worth ₹765 crore for large-scale electronics manufacturing, including Apple iPhone chip maker Wistron.
The Economic Times reported that Wistron would receive ₹601.93 crore of the total ₹765 crore. Whereas Dixon Technologies' unit Padget will receive ₹149.63 crore. AT&S, Shogini, and Alcon Electronics will receive incentives worth ₹7.58 crore, ₹3 crore, and ₹2.40 crore, respectively.
Besides, media reports have emerged that the central government is also planning to launch the PLI scheme to promote domestic production of high-end smartphone components and other IT hardware in India. The scheme is expected to be worth around ₹10,000 - 12,000 crore.
As of September 2022, the PLI scheme for Large-Scale Electronics Manufacturing (LSEM) has attracted investment of ₹4,784 crore, and led to a total production of ₹2,03,952 crore, including exports of ₹80,769 crore. The scheme has also generated employment of 40,916. Electronics manufacturing is expected to rise to $300 billion by 2025-26.
The production of mobile phones has risen from about 6 crore in 2014-15 to approximately 31 crore in 2021-22. The export of mobile phones has also seen a sharp increase. India exported ₹45,000 crore worth of mobile phones in FY 2021-22 and during the current year up to November 2022, mobile phone exports have already crossed ₹40,000 crore, which is more than double the exports made during the same period last year, according to Niti Aayog data.
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