“USD 300 billion in Sustainable Electronics Manufacturing & Exports by 2026”, according to a five-year roadmap and vision document produced by the Ministry of Electronics and Information Technology.

The vision document lays out a detailed plan for India's transformation from a $75 billion electronics manufacturing powerhouse to a $300 billion electronics manufacturing powerhouse by 2026.

Over the next five years, the domestic market is predicted to grow from $65 billion to $180 billion.

“Amongst the key products that are expected to lead India's growth in electronics manufacturing include mobile phones, IT hardware (laptops, tablets), consumer electronics (TV and audio), industrial electronics, auto electronics, electronic components, LED Lighting, strategic electronics, PCBA, wearables and hearables, and telecom equipment. Mobile manufacturing that is expected to cross USD 100 billion annual production - up from the current USD 30 billion - is expected to constitute nearly 40 percent of this ambitious growth”, reads the document.

Union Minister of Electronics and Information Technology Ashwini Vaishnaw complimented and praised the entire Ministry of Electronics and Information Technology team for their efforts in releasing the documents and policy framework items at such a rapid pace. Vaishnaw also addressed some of the issues raised by industry executives during his recent meeting with them. In response to industry concerns about dual regulations in mobile manufacturing, the Minister underlined that the telecom department will not enter the industry and that the regulatory system for mobile production will stay unchanged.

Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology and Skill Development and Entrepreneurship, highlights that the Ministry is focusing on broadening and deepening India's electronics industry, in line with Prime Minister Narendra Modi's recent statement at the World Economic Forum, in which he stated that India is emerging as a reliable and trusted partner in value chains.

Talking about the objective of volume-2 of the vision document released Chandrasekhar says, "new markets, new customers and being a player in Global Value Chain (GVC) is the goal and mission of the secnd phase. This volume along with the 1st Volume on electronics manufacturing, represents an excellent example of goal setting, detailed strategy making after hours of deep engagement between government and industry. He further added that the numbers in the 2nd Volume of vision document confirms that there is a real opportunity in electronics sector, driven by 2 factors: growth of digital consumption and growth and diversification of global value chains”.

The five-part strategy, which is based on an ‘all of the government’ approach, focuses on widening and developing India's electronics manufacturing industry. This will be accomplished by luring global electronics manufacturers/brands, shifting and establishing sub-assemblies and component ecosystems, constructing a design ecosystem, cultivating Indian champions, and gradually decreasing India's cost disadvantages.

The US$300 billion in electronics manufacturing follows the government's announcement of a US$10 billion PLI Scheme to boost the Semiconductor and Display ecosystem. Over the next six years, the government will invest nearly US$17 billion in four PLI schemes: Semiconductor and Design, Smartphones, and IT Hardware and Components. As India transitions from its current position to one that is ready to compete with China and Vietnam, the Vision Document makes a strong suggestion to focus on aggregate local value addition in the electronics sector. It also emphasizes the critical role that Indian champions will play alongside global companies, both of whom are already members of the PLI Schemes.

To put India on the path to US$300 billion in electronics manufacturing, the report calls for a competitive tariff structure on electronic components and the removal of all regulatory ambiguity. The report suggests a ‘winner-take-all’ strategy based on economies of scale and global competitiveness, as well as new and revised incentive schemes for some sectors and the need to address sustainability and ease of doing business.