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India To Establish Indigenous Ecosystem To Promote Electronics Manufacturing

Asia Manufacturing Review Team | Tuesday, 28 March 2023

 Asia Manufacturing Review Team

As per a report, the ministry of electronics and IT intends to establish an indigenous ecosystem in the field of electronics manufacturing so that companies in the supply chain network can relocate from their current business bases in China, Vietnam, and Taiwan, in order to promote India as a hardware manufacturing nation. The Indian government has started the 'Made in India' effort to support Indian mobile manufacturing companies and now the strategy is focusing on hardware manufacturing.

According to the report, MeitY has formed a nine-member task force with industry players to discuss electronic products and components that can be brought under domestic manufacturing, current issues in hardware manufacturing, the need for any policy intervention, and the timeline by which certain issues can be resolved, among other things.

"India has been doing well in information technology (IT) but a lot more needs to be done in hardware manufacturing. Several items continue to be dependent on other nations, and with this plan in place, we want to cut our imports "According to a senior government source familiar with the situation.

The official also added that, "This suggestion to make a taskforce and resolve issues around manufacturing has come from the industry. We will soon conduct our first meeting to discuss the subject and then will be able to come up with recommendations."

According to government data, the country's mobile phone production increased to 310 million units worth INR 2.75 trillion in FY22, up from 58 million units worth INR 18,900 crore in 2014-15. On the backdrop of these statistics, the official reportedly added that, "There was a time when all these mobile phones were imported. Now, we have started the production here in the country. The plan is to work down to manufacturing components and chips."