Electronics companies seek Rs 35,000-crore incentive plan for components
electronics manufacturing industry is urging the government for a ₹30,000-₹35,000 crore production-linked incentive (PLI) scheme for components and sub-assemblies, along with capital expenditure backup to support surging exports of mobile phones and other electronics.
«The incentive scheme is needed to support growing demand for electronics components to the tune of $75-$80 billion by 2026, and $300 billion by 2032 to support $300 billion worth of electronics products manufacturing by 2026 and $1.2 trillion by 2032,» the India Cellular & Electronics Association (ICEA), which represents top smartphone brands and manufacturing companies, said.
The scheme's objective is to boost domestic value addition, especially in mobile phone manufacturing to 35-40%, from 18% now, said ICEA, adding component manufacturing should run parallel to the development of semiconductor ecosystem, currently underway in India. «In confronting its burgeoning semiconductor demand, we must recognise the emergent necessity to pivot from heavy reliance on imports towards fostering an indigenous semiconductor ecosystem, underpinned by localised PCBA operations, focused circuit design, and deepened value addition across product manufacturing,» the industry body said.
It added that the component ecosystem would take at least 2-3 years to start commercial production. Once it takes off, domestic manufacturing of components should be able to cater to 5-10% of global demand in 6-7 years, ICEA said, adding international firms should be invited to get a
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