Prime Minister Narendra Modi’s vision for 2023 is to have mobile phone exports with the segment featuring in the top 10 export category from India, Minister of State for Electronics and IT Rajeev Chandrasekhar said.
Rajeev Chandrasekhar said that the government will take all the measures that are require for boosting the electronics manufacturing ecosystem in India and in 2023 will look at widening the manufacturing base beyond mobile phone manufacturing.
Rajeev Chandrasekhar Said :
Mobile phone exports from India was around Rs. 45,000 crore which was dominate by Apple and Samsung.
Rajeev Chandrasekhar said that the government is working to broaden the electronic manufacturing ecosystem beyond mobile phones to increase global share in hearables and wearables segment, IT hardware, electronic components etc.
As per a study by electronics component makers body ELCINA, the demand for components in 2020-21 was $32 billion (about Rs 2.65 lakh crore) for about a $70 billion (Rs 5.8 lakh crore) industry and of this, barely $10 billion (Rs 82,000 crore) was manufactured locally, and that too with a majority of import raw materials.
Rajeev Chandrasekhar did not elaborate on the specific measures, official sources have share that the government has plans to come up with a production link incentive scheme for hearables, wearables as well as an upgrade PLI scheme for IT hardware and electronics components to boost their local production.
Rajeev Chandrasekhar Said :
Indian brands like Imagine Marketing BoAt and Fire-Boltt now figure in global top selling brands in the wearable and hearable category.
With growth in data driven by 5G and high speed broadband, demand for data centres and in-turn servers are also on the rise.
According to market research firm Research And Markets, the Indian server market was value at $1.6 billion (approx. Rs. 13,220 crore) in 2022 and is expect to grow at a compounded annual growth rate of 7.19%.
Rajeev Chandrasekhar Said :
Under the PLI scheme for IT Hardware, the government had select 14 companies for manufacturing IT hardwares which include Dell, Rising Stars, Flextronics Technologies, Lava International, Dixon Technologies etc.
The scheme has provision to provide an incentive of up to Rs 7,325 crore which is link to incremental investment and sales of locally manufacture goods.
The IT hardware manufacturers’ body MAIT has ask the government to delink the incentives from the investments as several players already have excess production capacity and increase the total incentive under the scheme to Rs. 25,000 crore.