Vision Document for the electronics sector today, titled “$300 bn Sustainable Electronics Manufacturing & Exports by 2026

 

Ministry of Electronics and Information Technology, in association with ICEA, released a 5-year roadmap and Vision Document for the electronics sector today, titled “$300 bn Sustainable Electronics Manufacturing & Exports by 2026.” This roadmap is the second volume of a two-part Vision Document – the first of which titled “Increasing India’s Electronics Exports and Share in GVCs” was released in November 2021. This report provides a year-wise break-up and production projections for the various products that will lead India’s transformation into a US$300 billion electronics manufacturing powerhouse, from the current US$75 billion. Amongst the key products that are expected to lead India’s growth in electronics manufacturing include Mobile Phones, IT Hardware (laptops, tablets), Consumer electronics (TV and audio), Industrial electronics, Auto electronics, Electronic components, LED Lighting, Strategic electronics, PCBA, Wearables and hearables, and Telecom equipment. Mobile manufacturing that is expected to cross US$100 billion annual production - up from the current US$30 billion - is expected to constitute nearly 40% of this ambitious growth.

 Scale up of domestic manufacture by 2.2X in 5 years appear realistic with PLI schemes but can India increase exports by 10.3X in 5 years?

Draft National Policy on Electronics 2018 (NPE 2018)- what is new?

In the long wish list, there are few statements/ intentions that stand out.

• Admission:  Replacing M-SIPS scheme with schemes that are easier to implement such as Interest subsidy and Credit default guarantee, etc., in order to encourage new units and expansion of existing units in electronics manufacturing sector.(5.1.4).

• Contradicting: Exempt the import duty on identified capital equipment not being manufactured in the country, to reduce capital expenditure for setting up/ expansion of existing units.(5.1.6). Levy Cess on identified electronic goods to be considered to generate resources for promotion of certain critical sub-sectors of electronics manufacturing such as semiconductor wafer fabrication and display fabrication units.(5.1.9).
• Confusion persists: Promote path-breaking research, grass root level innovations and early stage Start-ups in emerging technology areas such as....having major economic potential, with a special focus on applying the outcomes, including frugal solutions, to solve real-life problems. (5.6.1)
• Daring: ...acquire & pool, Core and Peripheral IPs and make them available to the Industry (5.6.4). Promote investment in mega facilities abroad, such as an existing FAB facility, including support for setting up of R&D units abroad, where eco-system exists for a particular technology.(5.15).

Download document. Comment by 15th November 2018.