IANS Exclusive: Bengaluru, Karnataka: India’s electronics exports are booming due to the PLI scheme and manufacturing clusters, said IESA President Ashok Chandal. These have drawn global investors, with Apple’s operations—via Foxconn and Pegatron (partly Tata-owned)—driving over 50% of exports. Beyond smartphones, EVs, medical devices, and IoT show promise. Chandal targets a $500 billion market by 2030, urging stronger supply chains and R&D.
#IndiaElectronics #PLIScheme #ManufacturingBoom #ElectronicsExports #AppleIndia
#IndiaElectronics #PLIScheme #ManufacturingBoom #ElectronicsExports #AppleIndia
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00:00India's electronic export has been rising
00:02not steadily but
00:03substantially and very fast.
00:06There are several factors that contribute
00:07to this growth trajectory.
00:10First and foremost, it is the government
00:12policies and support,
00:13particularly the
00:16electronic manufacturing clusters and other
00:18stuff, that helps
00:19to build the momentum and also addresses
00:21part of the disability.
00:22Number two,
00:23the increasing
00:24status
00:27of the domestic requirement or demand
00:28for electronic products.
00:31This demand contributes to a need for local
00:33manufacturing as well as from anywhere else.
00:35That also gives rise to the economics of scale
00:38and that helps us to build
00:40a sustainable export-oriented
00:40manufacturing.
00:43Number three, there are global players
00:45that are looking at a country C plus one
00:48and they find India as an attractive
00:50destination where Indians
00:51have really proven
00:52that the electronics manufacturing
00:53can be done in a much better way.
00:56So that is a global player
00:58coming in, the FDI which is pouring in,
01:01that is foreign direct investment,
01:02that is pouring in, and that is adding to
01:05the sector's funding requirement.
01:06In addition,
01:09the Indians are good in terms of the
01:10skilling, actually.
01:11So the fast-skilling
01:12has been done, the labour
01:14and the employees,
01:15those have been doing a very good job
01:17in terms of catching up
01:18with the requirement
01:19of the high-tech manufacturing,
01:20as well as several
01:21state governments
01:22have also created
01:23a conducive policy
01:24in terms of
01:25ease of doing business
01:26and also on-ground
01:27facilities and support
01:28that included
01:29the digital transformation,
01:30the infrastructures
01:31and so forth.
01:32So these are the several
01:33factors that contribute
01:34to the export
01:35growth of electronics
01:36from the country.
01:37This has been
01:38one of the torchbearers,
01:39I would say,
01:40a very flagship project,
01:41because this also
01:42, this not only
01:43established
01:44India's credentials
01:45into high-tech
01:46manufacturing,
01:46giving a global
01:47visibility,
01:48because once you
01:49do some manufacturing
01:50for Apple,
01:51it has got to be
01:52a global
01:53product.
01:54So that is a
01:55very important
01:56factor in terms of
01:57manufacturing for
01:58Apple.
01:59It has got a
02:00very high global
02:01visibility.
02:02It has created a
02:04reputation for brand
02:05India in terms of
02:06the electronics
02:07manufacturing.
02:07The several players,
02:08particularly the
02:09Apple's contract
02:10manufacturers,
02:11such as Foxconn,
02:12some of them are
02:13part of Tata Group
02:14now, have really
02:15done a commendable
02:16job in terms of
02:17meeting the
02:18requirements of
02:19the Apple,
02:20as well as the
02:21quality and
02:22reliability of
02:22the product
02:23they manufacture.
02:24So this has
02:25created a good
02:26reputation for
02:26Apple in terms
02:27of the quality and
02:29reliability of
02:29various components
02:30that may be
02:31required for the
02:32mobile phone,
02:33including the
02:33need of the
02:34casings,
02:35the batteries,
02:36the connectors
02:36and other stuff.
02:37Those are going to
02:38happen later on.
02:40So overall, the
02:40exports of India,
02:41the electronics
02:42export, I think
02:43Apple is almost
02:4450% or more of
02:45the total exports,
02:46so that gives a
02:48very high visibility
02:49and also good
02:50momentum for the
02:51other sectors to
02:51perform now.
02:52So I would call
02:54this a very good
02:55example of
02:56India's side and a
02:57great proof point
02:58that India can do
02:59a high-tech
03:00manufacturing.
03:01These schemes have
03:02been highly
03:02important and
03:03very instrumental.
03:04Typically, we
03:05used to always
03:06say that India is
03:07a bit behind in
03:08terms of the
03:10electronics manufacturing
03:10and there is a
03:11factor called
03:12disability compared
03:13to the
03:14competitiveness,
03:14compared to
03:15other countries
03:16like Vietnam
03:16or let's say
03:17China.
03:18So these
03:19incentives do
03:20help to take
03:21away those
03:21initial barriers.
03:22So the
03:23incentives,
03:24those have
03:24been established,
03:25the electronic
03:26manufacturing
03:26clusters, the
03:27central government
03:28funding support,
03:28including some
03:29of the state
03:30government's
03:30incentive, are
03:31all put
03:32together, adds
03:32to the
03:33momentum that
03:34in India it
03:35is cost
03:35competitive to
03:36do the
03:37manufacturing.
03:37So the
03:38schemes play
03:38a very, very
03:39important role
03:40and we have
03:41seen recently
03:42industry and
03:42commerce
03:43ministry has
03:44already informed
03:44last week that
03:45they have
03:46started paying
03:46out the
03:47reimbursements
03:48of the
03:48various
03:49companies.
03:49So we
03:50have seen
03:50that the
03:51companies are
03:52paying out
03:53the
03:53reimbursements
03:54of the
03:55various
03:55beneficiaries
03:56on all the
03:56sectors, not
03:57only electronics,
03:58but also the
03:58automotive,
03:59pharma,
04:00industries and
04:00other stuff.
04:01So these
04:01all incentives
04:02have been
04:03paid out by
04:04the government
04:04last week, has
04:05added to the
04:06proof point that
04:07government means
04:08business, whatever
04:08they commit,
04:09they do pay
04:10out, and I'm
04:11sure that this is
04:12going to help
04:13further to increase
04:14more investment
04:15into the
04:16sectors and
04:16increase the
04:17manufacturing
04:18much
04:18substantial.
04:19So India
04:19has
04:20demonstrated
04:20by having
04:21this
04:22smartphone
04:22manufacturing
04:23export,
04:23India has
04:24demonstrated
04:24that India is
04:25competitive in
04:26terms of the
04:27global hub,
04:27though still we
04:28have to do a lot
04:30of catch-up.
04:31There are several
04:32other opportunities
04:32where India can
04:33do electronics
04:34export, that
04:35includes the
04:35automotive
04:36electronics,
04:36the EVs,
04:37that includes
04:38the medical
04:38instrumentation,
04:39the
04:39industrial
04:39IOT, the
04:40consumer
04:40electronics,
04:41televisions
04:41and other
04:42stuff.
04:43Plenty of
04:43opportunities,
04:44and we
04:44expect that
04:45India's
04:45electronics
04:46demand or
04:46market
04:47sector
04:47will
04:47continue to
04:48grow.
04:48So we
04:48expect that
04:49India's
04:49electronics
04:50demand or
04:50market
04:51sector
04:51will
04:52continue to
04:52grow.
04:53So we
04:53expect that
04:54India's
04:55electronics
04:55demand or
04:56market size
04:56can increase
04:57to $400
04:57to $500
04:58billion by
04:582030, and
04:59that gives
05:00abundant
05:00opportunity
05:00for
05:01exports.
05:01The most
05:02important
05:02factor here
05:03is still
05:03that because
05:04of this,
05:05whatever
05:05is
05:05began
05:06now, it
05:06gives the
05:07opportunity
05:08to increase
05:08the value
05:08addition.
05:09So for
05:09the
05:10electronics
05:10manufacturing,
05:10the value
05:11addition
05:11is
05:11quite
05:12limited.
05:12It's
05:12about
05:1318%
05:13as per
05:14the
05:14statistical
05:14data
05:14available.
05:15And there
05:15is a
05:16plan to
05:16increase
05:16this to
05:17beyond
05:1730 to
05:1740%.
05:18So this
05:18initial
05:19start-up,
05:19the
05:20getting
05:20access to
05:20the
05:21manufacturing
05:21as well
05:22as
05:22expanding
05:23in a
05:23competitive
05:23way is
05:24very, very
05:24instrumental
05:25to go
05:25forward with
05:26a high
05:26value-added
05:27manufacturing.
05:27This is
05:28a very
05:28important
05:29topic,
05:29actually.
05:29I just
05:30touched upon
05:30that the
05:31value
05:31addition
05:31is very
05:32important.
05:32So India
05:33needs to
05:33look at
05:34more of a
05:34supply chain
05:35resilience.
05:35That means
05:36when we
05:36do
05:36electronics
05:37manufacturing,
05:37it needs
05:38hundreds and
05:38hundreds of
05:38different
05:39types of
05:39components,
05:40be it
05:40semiconductors,
05:41the
05:41connectors,
05:41the
05:42passive
05:42capacitors,
05:47the
05:48batteries,
05:48the
05:49displays,
05:49and so
05:49forth.
05:50As of
05:50now, India
05:51has got a
05:51very limited
05:52manufacturing.
05:52Mostly we
05:53import.
05:53So we are
05:54just importing
05:55and we are
05:55getting or
05:56we are
05:56manufacturing
05:57or
05:57assembly.
05:58So this
05:58is where
05:59India needs
05:59to improvise.
06:00And the
06:00schemes such
06:01as the
06:01production
06:02link
06:02incentive
06:02for the
06:03components
06:03manufacturing,
06:04for the
06:04display,
06:04for the
06:05connectors
06:05and
06:05capacitors,
06:06including
06:06the
06:06PCB that
06:07is required
06:07for each
06:08electronic
06:08product is
06:08going to
06:09be very,
06:09very
06:09important.
06:10We
06:10understand
06:10that the
06:10Ministry of
06:11Electronics
06:11and IT
06:12is already
06:12working on
06:13this.
06:13Several
06:14recommendations
06:14were made
06:14by IESA
06:15and other
06:15stakeholders
06:16to have
06:16the production
06:17link incentives
06:18for components.
06:18So that is one
06:19thing which
06:20needs to be
06:20done, and I
06:21am sure it
06:22will happen
06:23very soon,
06:23which will
06:24help to
06:24increase the
06:25supply chain
06:25resilience and
06:26also increase
06:26the value
06:27addition.
06:27So this is
06:28the way to
06:28go.
06:29Number two,
06:29on the
06:30semiconductors,
06:30because
06:30semiconductor
06:31constitutes
06:31substantial
06:32portion of
06:32the
06:33supply chain
06:33resilience.
06:33So this is
06:34a way to
06:34go.
06:35Number three,
06:35on the
06:35production
06:36link
06:36incentives,
06:36we
06:37understand
06:37the
06:38need
06:38for
06:38the
06:38production
06:39link
06:39incentives
06:40.
06:40So that
06:40is the
06:41way to
06:42go.
06:42Number two,
06:43on the
06:43semiconductors,
06:44because
06:44semiconductor
06:44constitutes
06:45substantial
06:45portion of
06:46any
06:46electronic
06:46product,
06:46so almost
06:4720 to
06:4730% of
06:48the
06:48build-up
06:49material
06:49cost.
06:49And the
06:50semiconductor
06:50incentive
06:51programme
06:51called
06:51SIP,
06:52Semicon India
06:52programme
06:52is already
06:53been
06:53operational.
06:5476,000
06:54were
06:54allocated,
06:55and we
06:55are
06:55awaiting
06:56now SIP
06:56number two,
06:57that's the
06:57second
06:57version,
06:58which will
06:58help to
06:59increase
06:59further
06:59additional
07:00projects,
07:00commitment
07:07as well as various state governments are helping.
07:09So semiconductor localization, including the display localization or the local manufacturing,
07:15is going to be also very, very instrumental and important to increase the local value
07:20addition.
07:21So these are the few factors which we need to take care of, the components, the semiconductors,
07:25the displays.
07:26The most important factor what we see now in the last few years is the Indian conglomerates,
07:32the Indian corporates are coming forward to invest into this sector of electronics
07:36and semiconductor, be it Tata Group, be it Keynes, be it several Indian contract manufacturing
07:43companies such as SGS, Dixon, Keynes, Avalon and other people, and also the various component
07:51making companies actually.
07:52So overall we see a very good momentum.
07:55The global companies finding it interesting to come to India, like Apple, Samsung and
08:00some Chinese phone makers and other stuff.
08:02The local Indian corporates are showing interest and appetite to do investment.
08:06The central government and the state government is showing strong willingness of incentives,
08:12the infrastructure, as well as the addressing the disabilities by various means, and the
08:18component-related ecosystem which is expected to grow further.
08:22All these things would help us to increase the value addition, make us much more globally
08:27competitive and also a reliable brand out of India.
08:30By that way, we will not only become Atma Nirbhar, but Make in India will be successful.
08:35And we are looking forward to the market size of $400 to $500 billion in electronics by
08:40year 2030 and also the semiconductor demand of $103 billion by year 2030, and which is
08:47as per the report which is instituted by IESA and which was released recently actually.