India's electronic manufacturing may reach USD 500 bn by 2030: CII report
India needs to take critical actions to transform its electronic sector ecosystem from an 'import dependent assembly led manufacturing' to 'component level value-added manufacturing', highlights a report by Confederation of Indian Industry.
As per the Report, in 2023, the demand for components and sub-assemblies stood at USD 45.5 billion to support USD 102 billion worth of electronics production. This demand is expected to scale to USD 240 billion to support the USD 500 billion worth electronics production by 2030.
The priority components and sub-assemblies including PCBAs (Printed Circuit Board Assembly), are projected to grow at a robust CAGR (Compounded Annual Growth Rate) of 30 per cent, reaching USD 139 billion by 2030.
The report also recommended the government to take key actions including a scheme to provide fiscal support, SPECS 2.0 (Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors) to be introduced, import tariffs on components like camera modules to be rationalized, and sign FTAs with European and African countries.
The Report identifies 5 priority components/sub-assemblies of batteries (lithium-ion), camera modules, mechanicals, displays, and PCBs (Printed Circuit Board) which are categorized as high priority for India. They cumulatively accounted for 43 per cent of the components demand in 2022 and are expected to grow to USD 51.6 billion by 2030.
These components have either nominal production in India or are heavily import-dependent. India can hardly afford to
