The domestic electronics market is expected to increase from $65 billion to $180 billion over the next five years and this will make electronics amongst India’s two-three top ranking exports by 2026. The Ministry of Electronics and Information Technology (MeitY), in association with Indian Cellular and Electronics Association (ICEA), in a report on Monday highlighted a year-wise break-up and production projections for the various products that will lead India’s transformation into a $300-billion electronics manufacturing powerhouse, from the current $75 billion. The report titled ‘$300-billion Sustainable Electronics Manufacturing & Exports by 2026’, 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. Of the $300 billion, exports are expected to increase from the projected $15 billion in 2021-22 to $120 billion by 2026, it said.
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, the report highlighted.
Mobile manufacturing that is expected to cross $100 billion annual production — up from the current $30 billion — is expected to constitute nearly 40 per cent of this ambitious growth, it said. However, the $300-billion target is different from the National Policy on Electronics (NPE) 2019 that had set a target of achieving a turnover of $400 billion by 2025. The industry will be unable to achieve the target set by NPE 2019, due to the adverse impact of the Covid-19 pandemic on the sector, the latest report said. “The NPE 2019 targets for electronics production in 2025-26 at $300 billion appears to be more realistic considering the disruption on account of Covid-19 in the past 18 months which has been aggravated with the new variants of the Covid-19 virus such as Omicron,” it said.
Ashwini Vaishnaw, Minister of Electronics and Information Technology, meanwhile clarified that telecom department is not going to enter into mobile manufacturing and the mobile manufacturing regulatory regime will remain the same. Speaking on the occasion, Shri Rajeev Chandrasekhar, Minister of State, Electronics & IT and Skill Development & Entrepreneurship, said the objective of the volume-2 of the vision document confirms that there is a real opportunity in electronics sector, driven by two factors — growth of digital consumption and growth and diversification of global value chains. “New markets, new customers and being a player in Global Value Chain is the goal and mission of the second phase. This volume along with the first volume on electronics manufacturing, represent an excellent example of goal setting, detailed strategy making after hours of deep engagement between government and industry,” Chandrasekhar said.