Mumbai:Buoyed by the government’s Rs 2.3 lakh crore policy push for self-reliant India, the domestic electronics manufacturing industry is expected to see 30 per cent growth in the next fiscal to be worth nearly Rs 7 lakh crore.
While the government continues to make efforts to move up in the global electronics supply chain and is expected to come up with new policies and incentive schemes for wearables and IT hardware, the immediate challenges are those around electronic components, mainly electronic chips, and potential threats from the coronavirus pandemic. ”The value addition from local manufacturing units is expected to go up to 25 per cent next year from 18 per cent at present. The government is aiming to grow overall electronics production in the country by 30 per cent to over Rs 6.9 lakh crore next year,” a senior Ministry of Electronics and IT (Meity) official told PTI.
The Meity has proposed a PLI scheme of about Rs 22,000 crore to promote wearables as well as enhance incentives for IT hardware manufacturers in the next financial year as it aims to increase electronics exports from India by 50 per cent.According to industry body ICEA, whose members include Apple, Foxconn, Wistron, Lava and Vivo, mobile phone production in the country peaked at Rs 2.2 lakh crore in 2020-21 and is expected to cross Rs 2.75 lakh crore by March 2022. Chinese players like Xiaomi, BBK Electronics group firms Vivo, Oppo, Realme and Iqoo dominate the smartphone segment with about 70 per cent market share. ”Chinese companies are only focussing on catering to the Indian market requirement. Therefore, they have not participated in the PLI scheme. We expect Indian companies to do well and become global champions,” the Meity official said.
When asked about the contribution of Indian companies in electronics production, India Cellular and Electronics Association Chairman PankajMohindroo said the share has come down from 47 per cent of volume in 2016 to under 8 per cent now. ”The government has already introduced a significant measure in PLI wherein under the USD 200 (about Rs 15,000) segment is reserved for Indian companies.
A slew of other support measures is also being planned and we are sure that not only will Indian companies have a share of the domestic market but they will also emerge as global champions at least in the entry level segment,” Mohindroo said. The electronics manufacturing growth in the country remained almost between Rs 5,33,670crore in 2020-21 and Rs 5,33,550 crore in 2019-20. ”Today we are exporting 50 lakh phones, including smartphones.
However, the concern remains that we are not still close to a strong electronics brand emerging out of India which could cater locally as well as become India’s face globally.