India has set an ambitious target of manufacturing $300 billion worth of electronic goods by the year 2026. This goal was announced by Rajeev Chandrasekhar, the Minister of State for Electronics and Information Technology, during a recent event. He stated that this move is expected to further boost the already burgeoning electronics industry in the country.
India has been making significant strides in the field of electronics manufacturing in recent years, with the government launching a series of initiatives to promote the sector. These initiatives have included the Make in India campaign, as well as the National Policy on Electronics (NPE), both aimed at attracting investors and boosting local production.
The government has also implemented several policy changes in the past few years to make the country more attractive to foreign investors. The introduction of the Goods and Services Tax (GST) has streamlined the taxation system, while the recent Production Linked Incentive (PLI) scheme has offered substantial incentives to companies that set up manufacturing units in India.
These efforts have yielded significant results, with the electronics industry in India growing at an impressive rate. According to reports, the sector is expected to reach a value of $400 billion by the year 2025, with a compound annual growth rate of around 16%.
However, despite this growth, India still lags behind countries like China and Taiwan in terms of manufacturing capability. This is largely due to a lack of domestic supply chains and a shortage of skilled workers.
To overcome these challenges and achieve the $300 billion target, Chandrasekhar highlighted the need to focus on manufacturing components locally. He stressed the importance of establishing robust and reliable supply chains within the country, and encouraged domestic and foreign companies alike to invest in this area.
He also emphasized the need to upskill the workforce and create more job opportunities in the sector, in order to meet the growing demand for electronics goods. In particular, he identified the need for specialized training programs for workers in niche areas such as artificial intelligence, machine learning, and robotics.
Many industry experts have expressed optimism about India’s potential to become a major player in the electronics industry. With a population of over 1.3 billion and a rapidly developing economy, the country offers a vast market for electronic goods.
Moreover, India’s strategic location and relatively low labor costs make it an attractive destination for global manufacturers looking to diversify their supply chains. Already, several major companies such as Apple, Samsung, and Foxconn have set up manufacturing facilities in the country.
However, the road ahead is not without its challenges. In addition to the supply chain and skill-related issues mentioned earlier, India also faces stiff competition from established electronics manufacturing hubs such as China and South Korea.
Nevertheless, the government’s recent efforts to foster electronic manufacturing in the country have been encouraging. The PLI scheme, in particular, has attracted significant interest from both local and foreign companies, with several major players committing to setting up or expanding their operations in India.
Additionally, initiatives such as the establishment of electronic manufacturing clusters (EMCs) and the implementation of a single-window clearance system for investors have streamlined the process of setting up factories in India.
In conclusion, India’s target of manufacturing $300 billion worth of electronic goods by 2026 is an ambitious but achievable goal. With the right policies and investments, the country has the potential to become a major player in the global electronics industry. However, it will require sustained efforts and continued support from both the government and private sectors to make this happen.