India's effort to become a global leader in electronics manufacturing is going well according to the plan. One of the core components to develop this potential is to enhance the domestic electronics components ecosystem, which currently remains an underdeveloped segment of the value chain. To do this, the government has introduced specific schemes to encourage local manufacturing capabilities and reduce dependency on imports, which currently constitute 70% of the industry's component requirements.
The Production-Linked Incentive (PLI) schemes introduced in recent years have already driven growth in the final assembly of electronics products, particularly in mobile devices and IT hardware. However, experts believe the next critical step is to deepen domestic value addition, with an ambitious target to increase local contributions from 18–20% to 40% within the next five years.
To realize this vision, the government plans to introduce a financial support package designed to nurture the electronic components industry. This initiative is expected to encourage domestic players to integrate into the global supply chain while also attracting international component manufacturers to set up operations in India.
Today, challenges are still prevalent even after improved infrastructure and easy doing business. As Rajoo Goel, Secretary General of ELCINA points out the expert in the industry considered a need for two types of special schemes both production and capital incentives for global competitiveness of Indian electronics manufacturing. Closing these gaps, India aims to transform itself from a hub for final assembly to a complete powerhouse in electronics manufacturing.
This strategic pivot holds the potential to position India as a self-reliant and globally influential player in the electronics industry, catering to both domestic and international markets.
Conclusion
India's journey to becoming a global electronics manufacturing hub is both ambitious and achievable. By focusing on developing a robust domestic components ecosystem and increasing local value addition, the country is laying the foundation for long-term growth and competitiveness. The government's proactive measures, such as PLI schemes and financial support packages, signal a strong commitment to reducing import dependence and integrating Indian companies into the global supply chain.
While challenges like infrastructure gaps and high import reliance remain, the combination of targeted incentives and industry collaboration offers a clear path forward. With sustained effort and innovation, India is well-positioned to emerge as a self-reliant leader in electronics manufacturing, driving economic growth and enhancing its global footprint in the years to come.
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