Domestic electronic component manufacturing contribution to GDP will soon double, Telecom News, ET Telecom

New Delhi: With the government’s growing focus on domestic manufacturing of electronic components in the country, the electronics sector will see its contribution to GDP nearly double over the next few years, industry experts believe.

“With a series of government interventions such as PMP, SPECS and PLI, India is on its way to become the global hub of electronics products and with an economy of this size it is important for our country to have its own component and echo manufacturing system. This sector today contributes 3.4% to the GDP and is expected to contribute 6.4% over the next few years ”, said Rajeev Khushu, president of the India Electronics and Semiconductor Association (IESA).

IESA is the key industry body representing Electronic Systems Design and Manufacturing (ESDM) and the intelligent electronics industry in India. Through its close ties with its member companies, IESA aims to develop the ESDM and electronics business segment in India while making India the preferred destination for the design and manufacture of electronics and semiconductors.

In recent years, the government has put in place a number of policies to subsidize and encourage manufacturing of critical electronics in the country. Currently, India’s electronics import bill is second highest after petroleum and petroleum products.

The government has issued a number of policies to dramatically increase domestic electronics manufacturing in India and is continually improving these policies. These policies include the National Electronics Policy (NPE) which sets out the vision of making India a Global Electronic Systems Design and Manufacturing (ESDM) hub, the Product Incentive Program ( PLI) and the Electronic Component and Semiconductor Manufacturing Promotion Program. (SPECS) which encourages domestic manufacturing of electronic products, among others.

According to available data from Invest India, the agency responsible for promoting investment in India, the production of electronic components increased by $ 4 billion between 2014 and 2018. While the global electronic components market is expected to reach 191, $ 8 billion by 2022, the share of global electronic component manufacturing increased from 1.3% in 2012 to 3.6% in 2019. India’s electronic components market growth is driven by growing domestic demand and a growing electronic ecosystem coupled with initiatives such as ‘Make in India’ and ‘Digital India’. The Indian electronic components market has thus grown from $ 11 billion in fiscal year 2009-10 to $ 20.8 billion in fiscal year 2018-19, posting an annual growth rate of approximately $ 7 billion. %.

“With India’s median age in his twenties, electronics consumption is increasing at a CAGR of 15% for the next several decades. Khushu added.

In addition, initiatives such as the “Digital India” and “Smart City” projects have increased the demand for the Internet of Things. India’s electronics market is considered one of the largest in the world and is expected to reach $ 400 billion by 2025.

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