India is planning to boost electronic manufacturing to counter China and Vietnam in the long run. The government is expecting an output of USD 300 billion over the next four years through this sector. It is planning to broaden India’s product basket for incentives, for which it has already crafted large industrial zones with modern facilities, and has also granted permission to factories that may hold up to over 1 lakh workers.
The plan is to scale up the production of electronics in India that would strengthen the supply ecosystem in the country along with massive employment opportunities and global servicing. Recently, the IT and electronics ministry prepared ‘Vision Document 2.0’ that was presented at the India Cellular and Electronics Association through its chairman Pankaj Mohindroo.
IT minister, Ashwini Vaishnav said that the government has already committed approximately USD 17 billion over the next six years through four production-linked incentives (PLI) schemes, and will be coming out with more categories to extend the support to local manufacturers.
Along with providing PLI to global players like Taiwanese Foxconn, Wistron, and Samsung, the government also wants to boost domestic champions such as Optiemus, Dixon, and Lava in the sector.
The IT ministry is identifying land for building vast integrated economic zones with all requisite resources like electricity, roads connectivity built-in, etc., to provide a convenient environment to the companies for growth. The diversification of global value chains and the growth of digital consumption would help achieve the targets.
The junior IT & electronics Minister Chandrasekhar said, “We don’t have any particular view about China’s intervention in electronics manufacturing in India. The concept of trust in the value chain is an important attribute in the post-Covid world, and any investment or investment partner that meets the trust criteria can manufacture freely in the country.”