The electronics manufacturing sector in India has experienced significant growth in recent years, with a Compound Annual Growth Rate (CAGR) of 17% over the past eight years. In the current year, India achieved a major milestone by crossing the production benchmark of $105 billion USD (approximately Rs 9 lakh crore).
"India has now become the world's second-largest manufacturer of mobile phones, with mobile phone exports reaching a noteworthy milestone of $11 billion USD (about Rs 90 thousand crore) this year. The global electronics manufacturing ecosystem is increasingly being attracted to India, positioning the country as a significant player in electronics manufacturing," said Union Minister for Communications, Ashwini Vaishnaw, on Wednesday. He was addressing the national media through a video link.
PLI scheme for IT hardware
Building on the success of the Production Linked Incentive (PLI) scheme for mobile phones, the Union Cabinet has approved the PLI scheme for IT hardware. The salient features of this scheme include coverage for laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. The scheme has a budgetary outlay of Rs. 17 thousand crores and will span over a period of six years. It is expected to result in incremental production worth Rs. 3.35 Lakh Crores, incremental investment of Rs. 2,430 Crores, and the creation of 75 thousand new direct employment opportunities.
The significance of these developments lies in India's emergence as a trusted supply chain partner for global technology companies. The country's strong IT services industry, which enjoys substantial demand domestically, further supports this trend. Major IT hardware companies have shown keen interest in establishing manufacturing facilities in India. With the implementation of the PLI scheme, they are likely to cater to both the domestic market and utilize India as an export hub.
Overall, these developments indicate a positive trajectory for India's electronics manufacturing sector, showcasing its growing capabilities, attractiveness to global players, and potential to contribute significantly to the country's economy.
