The India Cellular and Electronics Association (ICEA) has projected that the total production of electronic goods in India for the fiscal year 2023-24 is poised to reach an impressive $115 billion. This surge is primarily attributed to the local production of mobile phones, expected to surpass $50 billion in the current fiscal year.
In the ongoing financial year, India has already exceeded the milestone of $100 billion in electronics manufacturing, with a significant contribution of $44 billion coming from the production of mobile phones. The mobile phone industry's success is attributed to a robust emphasis on deep manufacturing and increased localization, leading to a near self-reliance in components such as PCBAs, chargers, battery packs, and cables.
The focus on localization extends beyond mobile phones to encompass other components in the value chain. Substantial investments have been made in the local production of mechanics, die-cut parts, camera modules, display assemblies, and more.
Pankaj Mohindroo, Chairman of ICEA, emphasized the need for India to focus on becoming a manufacturing hub for the world. He highlighted the crucial role of the mobile phone manufacturing sector and called for replicating its outstanding performance in other verticals of the Indian electronics system design and manufacturing (ESDM) industry, including IT hardware, wearables, hearables, and electronic components.
The Indian government has set an ambitious target of achieving $300 billion in electronics manufacturing by 2025-26, with $100 billion expected to come from exports. Mobile phones alone are projected to contribute over $50 billion to exports by 2025-26.
ICEA expressed optimism about the future, citing initiatives like the Production-Linked Incentive (PLI) 2.0 for IT Hardware, which has a capital outlay of Rs 17,000 crore and a clear focus on value chain development. This is expected to yield impressive outcomes, further bolstering India's position in the global electronics manufacturing landscape.
(With Agency Inputs)
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