2 days Ago
The electronics industry has expressed mixed feelings about Prime Minister Modi's ambitious target of achieving $500 billion in electronics manufacturing by 2030. While industry leaders acknowledge the potential of this goal, they also emphasise the need for a clear roadmap and support from the government to make it a reality. Pankaj Mohindroo, a prominent figure in the industry and chairman of the Indian Cellular and Electronics Association (ICEA), stated that the target is "breath-taking" but achievable with the right strategies in place.
He said that the sector must achieve a compound annual growth rate (CAGR) of 21-22% to meet this goal. Furthermore, he pointed out that a significant portion, 25%, of the production from major companies like Samsung and Apple would need to shift to India. The industry anticipates that mobile phones and components will account for $180-200 billion of the overall target.
However, industry representatives have called for a reduction in tariffs and the establishment of free trade agreements (FTAs) to facilitate this growth. They also stressed the importance of attracting global value chains (GVCs) to India. Concerns were raised regarding the role of enforcement agencies, with industry leaders urging that customs, the Directorate of Revenue Intelligence (DRI), and the Enforcement Directorate (ED) should not hinder their operations.
This issue is expected to be a key point of discussion in upcoming meetings with the Finance Minister and the Prime Minister's Office. Additionally, the slow progress in IT hardware manufacturing remains a concern for the sector. Industry insiders believe that without state support in the form of reduced duties and favourable trade agreements, achieving the ambitious $500 billion target may prove challenging.
As the electronics industry prepares to engage with government officials, it remains hopeful yet cautious about the path ahead in realising this monumental vision. Also read: Lenovo expands AI presence in India with new AI server manufacturing and R&D lab.
