The electronics manufacturing industry is encouraging the public authority for a ₹30,000-₹35,000 crore production-linked incentive (PLI) plot for parts and sub-gatherings, alongside capital consumption reinforcement to help surging exports of cell phones and other hardware.
"The incentive scheme is needed to support growing demand for electronics components to the tune of $75-$80 billion by 2026, and $300 billion by 2032 to support $300 billion worth of electronics products manufacturing by 2026 and $1.2 trillion by 2032," the India Cellular & Electronics Association (ICEA), which represents top smartphone brands and manufacturing companies, said.
The scheme's objective is to boost domestic value addition, especially in mobile phone manufacturing to 35-40%, from 18% now, said ICEA, adding component manufacturing should run parallel to the development of semiconductor ecosystem, currently underway in India. "In confronting its burgeoning semiconductor demand, we must recognise the emergent necessity to pivot from heavy reliance on imports towards fostering an indigenous semiconductor ecosystem, underpinned by localised PCBA operations, focused circuit design, and deepened value addition across product manufacturing," the industry body said.
The plan's goal is to support domestic worth option, particularly in cell phone manufacturing to 35-40%, from 18% now, said ICEA, adding part assembling ought to run lined up with the advancement of semiconductor environment, in progress in India. "In confronting its burgeoning semiconductor demand, we must recognise the emergent necessity to pivot from heavy reliance on imports towards fostering an indigenous semiconductor ecosystem, underpinned by localised PCBA operations, focused circuit design, and deepened value addition across product manufacturing," the industry body said.
It added that the part biological system would require something like 2-3 years to begin commercial production. When it takes off, homegrown assembling of parts ought to have the option to take care of 5-10% of worldwide interest in 6-7 years, ICEA said, adding worldwide firms ought to be welcome to get a significant offer in the homegrown and worldwide component manufacturing market.