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Topic : Electronics Manufacturing in India
GS-3 Mains : Economy
- Production: $115 billion (FY24), nearly quadrupled in the past decade.
- Growth Projection (BAU): $278 billion by 2029-30, including $253 billion from finished goods and $25 billion from components.
- Employment Generation (BAU): 3.4 million by 2029-30.
- Global Market Share: 4%.
- Target: $500 billion in electronics manufacturing by 2030.
- Jobs created by $500 billion target: 6 million.
- Current Reliance on Smartphone Imports: 1%.
- Global Electronics Market Value: $4.5 trillion (currently), projected to reach $6.1 trillion by 2030.
- FDI in Electronics Manufacturing: 100% allowed under automatic route.
Government Initiatives
- National Policy on Electronics (NPE) 2019: Aims to make India a global hub for Electronics System Design and Manufacturing (ESDM).
- Production Linked Incentive (PLI) Scheme: Offers incentives for large-scale electronics manufacturing.
- SPECS: Focused on strengthening the component ecosystem.
- Modified Electronics Manufacturing Clusters Scheme (EMC 2.0): Aims to develop electronics manufacturing clusters across India.
Policy Interventions Needed
- Promote components and capital goods manufacturing.
- Incentivize research and development in electronics.
- Rationalize tariffs to boost local manufacturing.
- Develop skilled workforce through skilling initiatives.
- Facilitate technology transfers through collaboration with global players.
- Invest in robust infrastructure development.
Challenges
- Reduce dependency on imports and enhance domestic value addition.
- Strengthen design capabilities through R&D investments.
- Bridge the gap between domestic demand and supply of capital goods.
- Improve export competitiveness through innovation and R&D.
Way Forward
- Establish a dedicated center with a significant corpus (₹1,000 crore) focused on innovation in capital goods.
- Invest in nurturing talent, fostering collaboration, and R&D to elevate India’s capital goods industry.
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