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India's Electronics Manufacturing to Surpass Rs.1.28 Lakh Crore

CIO Insider Team | Monday, 30 January, 2023
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According to Rajeev Chandrasekhar, the minister of state for electronics and information technology, the country's electronics manufacturing is anticipated to surpass Rs 1.28 lakh crore in the upcoming fiscal year.

Word on the street says that the government is expected to expand and widen the ecosystem of electronics manufacturing with a new production-linked incentive program for makers of hearable-wearable, IT hardware, and component manufacturers.

Mobile phones have received attention since they are the electronics market area that is expanding the quickest globally, he continued.

He stated that the government will provide the necessary hand-holding to support the local ecosystem's component stakeholders.

To promote domestic manufacturing, the India Electronics and Semiconductor Association (IESA) has asked the government to change the PLI program into a design-led manufacturing program and impose a 10 percent import duty on any imported electronics equipment and assembled printed circuit boards (PCBs)

ELCINA, the trade association for manufacturers of electronic components, has asked the government to set aside USD 10 billion (about Rs 80,000 crore) for 8 years to increase production of other electronic components and critical modules.

The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) has been requested to be extended for an additional four years with an increased investment of Rs 16,000 crore in the Union Budget for 2023–2024.

The enhanced PLI, according to ELCINA, will make investments of about Rs 64,000 crore more feasible, with a target output of USD 24 billion (about Rs 1.95 lakh crore) for all components other than semiconductors.

The trade group has also asked for the reintroduction of income tax deductions for investments made in R&D.

Additionally, a PLI program with an emphasis on domestic electronics manufacturing services companies has been requested.

To promote domestic manufacturing, the India Electronics and Semiconductor Association (IESA) has asked the government to change the PLI program into a design-led manufacturing program and impose a 10 percent import duty on any imported electronics equipment and assembled printed circuit boards (PCBs).

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