How is India boosting its electronics manufacturing sector?

There has been an increased focus on the electronics manufacturing sector in India in the past few years. The size of the electronics manufacturing sector has more than doubled after 2015-16.

How India boosting its electronics manufacturing sector:

• Target to attain production of USD 400 billion by 2026 has been set by the National Policy on Electronics 2019.
• However, India is likely to attain USD 300 billion in electronics production by 2026, lower than the set target but still a 400% increase from current levels.
• The government has released a vision document, “Increasing India’s electronics exports and share in the global value chain” and focusing on this sector.
• Complete shift in strategy, going beyond the vision of import substitution to “Make in India for the world”.
• Increasing labour costs in China and geopolitical situations are compelling many global electronics majors to look for alternative manufacturing destinations and diversify their supply chain, for which India is the leading contender.
• Production linked incentive scheme for large scale electronics manufacturing.
• Scheme for promotion of manufacturing of electronic components and semiconductors.
• Electronics manufacturing clusters (EMC) scheme to provide support for creation of world-class infrastructure for attracting investments in the Electronic Systems Design and Manufacturing Sector.
• Financial assistance for setting up of both greenfield and brownfield EMCs across the country.
• Semicon India program with a vision to develop a sustainable semiconductor and display ecosystem in the country.
• 100% FDI under the automatic route is permitted for electronics manufacturing.
• The Electronics Development Fund has been set up to provide risk capital to start-ups and companies developing new technologies in the areas of electronics and information technology.

Way forward:

India aims to achieve a GDP of dollar 5 trillion by 2025, the electronics sector can play a major role in achieving this goal.