India (Commonwealth) _ India wants to become a $1 trillion economy by 2025, and by FY26, it hopes to manufacture $300 billion worth of electronics. The domestic electronics market, dominated by mobile phones, consumer electronics, and industrial electronics, was valued at $118 billion as of FY20, according to Economic Survey 2022-23.
Data shows that electronics exports increased by 13.8% in FY 23 (April–November), the highest rate in the previous six years. India wants to export electronics worth $120 billion by FY 26 with strong growth. As of FY20, the domestic electronics market was worth $118 billion. According to the poll, India wants to produce $300 billion worth of electronics and export $120 billion by FY 26. This goal is backed by the country’s goal of building a $1 trillion digital economy by 2025.
Mobile phones, consumer electronics, and industrial electronics are the main factors propelling this industry’s growth. India has become as the world’s second-largest producer of mobile phones, surpassing the United States in FY 22 with 31 crore units produced, up from 6 crore in FY 15.
According to the report, these figures should rise as more national and international companies establish and grow their operations in India. The production linked incentive (PLI) plan has already been accepted by two significant local and international participants in the electronic manufacturing services industry. By localizing, the program will assist a large number of domestic players in achieving production economies of scale. According to the report, this will thus improve export competitiveness even more and raise India’s involvement in the global value chain.
The PLI scheme for IT hardware, the PLI scheme for large-scale electronics manufacturing, and the scheme to promote the manufacturing of semiconductors and electronic components (SPECS) are a few of the government’s programs and incentives aimed at fostering and strengthening the electronics manufacturing base.
Additionally, the Cabinet authorized the comprehensive creation of a sustainable semiconductor and display ecosystem in the nation with an investment of Rs 76,000 crore under the program for development of semiconductors and display manufacturing ecosystem in India. The electronics manufacturing industry in India is expected to increase by 15% to reach a valuation of USD 115 billion by 2024, as industry participants continue to prioritize higher levels of value addition in terms of component development and product development.
The nation’s flagship product, mobile phones, are predicted to reach USD 50 billion in production by March 2024, up from almost USD 42 billion in the previous fiscal year. Beginning in the first quarter of 2024, Google will produce Pixel smartphones in India, completing the presence of all major global manufacturers in the nation’s manufacturing sector.
According to Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), the production of electronic goods is expected to reach USD 115 billion in the fiscal year 2023-24. This figure is expected to be driven by the remarkable contribution of mobile phones, which are expected to generate over USD 50 billion in revenue in the current fiscal year.
Government data indicates that domestic electronics production expanded more than four times in the previous ten years, from Rs 1,80,454 crore (USD 29.8 billion) in FY14 to Rs 8.22 lakh crore (USD 102 billion). According to Mohindroo, mobile phone shipments are predicted to reach USD 15 billion in FY24, a 35% increase from the previous fiscal year.
According to ICEA estimates, mobile phone exports from April to November of current fiscal year exceeded USD 9 billion, up from USD 6.2 billion in the same time previous year. Although the value and volume of domestic electronics production has been increasing, former RBI Chairman Raghuram Rajan sparked controversy by raising doubts about the extent of value addition occurring in the nation.
Ashwini Vaishnaw and Rajeev Chandrasekhar, two Union ministers, criticized Rajan for his statement. In a subdued jab at Rajan, Vaishnaw had said that he had joined the opposition and that the industry had overcome the opposition’s criticism by reaching unprecedented heights in the production of high-tech goods.
India, which is now the fifth-largest economy in the world, wants to grow to be worth five trillion dollars by 2026–2027. To do this, though, the industrial industry must undergo a profound upheaval. It is necessary to increase manufacturing’s current 17% GDP contribution to 25% in order to create more employment as well as promote economic growth.
India has to close the current gaps by concentrating on important industries including automotive/EVs, FMCG/CPG, chemicals, life sciences, and MMC in addition to high-tech manufacturing areas like semiconductors, mobile devices, and data centers. This entails creating expansive production facilities that are intelligent to promote efficiency and zero waste in addition to mass producing goods for both domestic and international markets.
With industry leaders, guests, technocrats, partners, and customers, the fifth edition of India Inc on the Move (IIOTM) will feature industry keynotes, industry tracks, technical seminars, and live demos. Top business executives from the manufacturing sector, innovators, and legislators will gather for a full day of discussions, deliberations, and debates about how to set India up for sustainable manufacturing in order to meet net zero targets and capitalize on the trillion-dollar contribution of the manufacturing sector to the country’s GDP in the near future.
