According to a recent published report, electronic exports of India can grow USD 180 billion by 2025.
The Electronics and Computer Software Export Promotion Council (ESC) has submitted a roadmap to the government to achieve the target in which it has recommended to expand focus of existing electronics manufacturing schemes and incentives beyond mobile production along with some policy intervention.
For India’s electronics exports ESC has created a roadmap, which include mobile and accessories, components and other electronics and hardware items, to USD 180 billion by 2025 to bring exports from the segment more or less at par with software exports, revealed Sandeep Narula, Chairman, ESC.
The ESC in its report said that the present ecosystem governing production linked incentive scheme (PLI) is currently limited to mobile phones and related specified component while it should be extended to the entire electronic manufacturing sector.
It highlighted that the sector as a whole is suffering from several disabilities such as higher level of taxation, high cost of power, high cost of finance etc affecting the competitiveness of the sector.
“The disadvantage works out to at least 8-10 per cent, enough to price out Indian products from the global market. This would also make Indian products, particularly components, costlier for Indian electronic product manufacturers, forcing them to go for large scale imports,” Narula said.
The government has come up with three schemes to incentivize mobile manufacturing in the country.
The Ministry of Electronics and IT has announced an incentive of around Rs 50,000 crore to attract global mobile manufacturers in the country.
According to Meity, 23 mobile phone players and component makers have submitted proposals to manufacture mobile phones worth Rs 11 lakh crore and components worth Rs 40,000-45,000 crore in the next five years.
Narula said that there is a need for bringing down the minimum incremental investment under PLI from Rs 100 crore so that MSMEs across the spectrum can take advantage of the benefits under the scheme.
According to the ESC, India’s domestic production is at USD 70 billion (around Rs 5,11,899 crore) accounting for 3.3 per cent of the global production.