Pankaj Mohindroo, president of the Indian Cellular and Electronics Association (ICEA), said this was due to the “exceptional” contribution of mobile phones.
India’s electronics manufacturing sector is expected to grow 15% to $115 billion by 2024 as businesses continue to focus more on higher value addition in terms of components and product development. Products.
Mobile phone production, the country’s leading electronics manufacturing model, is expected to exceed $50 billion by March 2024, up from about $42 billion the previous fiscal year.
Manufacturing of Google’s Pixel smartphones in India from Q1 2024 will complement the industrial presence of all major global companies in the country.
Pankaj Mohindroo, Chairman, Indian Cellular Electronics and Electronics Association (ICEA), said that the total electronic product output in the financial year 2023-24 is estimated at USD 115 billion, supported by special contributions from mobile phones, is expected to exceed $50 billion. in the current financial year. According to data shared by the government, domestic electronics production has increased more than four times to ₹8.22 lakh crore or ₹102 billion in the last 10 years from ₹1,80,454 crore ($29.8 billion) in the last fiscal year. main 2014.
Mohindroo said mobile phone exports are expected to reach $15 billion in fiscal 2024, up 35% from the last fiscal year.
ICEA estimates mobile phone exports crossed $9 billion between April and November this fiscal year, compared with $6.2 billion in the same period last year.
As domestic electronics manufacturing increased in both value and volume, former RBI Chairman Raghuram Rajan sparked a debate by questioning the extent of domestic value addition.
Rajan’s remarks drew criticism from Union ministers Ashwini Vaishnaw and Rajeev Chandrasekhar. Vaishnaw, in a veiled attack on Rajan, had said that he had joined the opposition and that the industry had ignored opposition criticism by reaching new heights in the production of complex technological products.
He also said that the domestic value added of many electronic products has increased by 60% and expected India to become a significant exporter of components in the next 3 to 4 years.
With a strong focus on intensive manufacturing and higher levels of localisation, Mohindroo said the mobile industry has also been able to achieve a near self-sustainable status in terms of PCBA (circuit board assembly). printed circuits), chargers, batteries and cables, among others. others.
In the race to build a semiconductor ecosystem, the government has achieved its first breakthrough with global memory chip maker Micron’s $2.75 billion project to create an assembly and Test domestic memory chip modules with 70% tax revenue. government support.
However, the sudden dissolution of the Vedanta-Foxconn joint venture because of the semiconductor factory project was unexpected. Now, the two units are working separately to create a semiconductor factory.
According to the official announcement, Tata Electronics, Foxconn and HCL Group have applied to establish chip factories. Chips are the most important and expensive components needed to create modern electronic devices.
Anku Jain, managing director of chipset company Fabless MediaTek India, said his company designs chipsets and will explore options to source locally manufactured chipsets, depending on the business case. business, when semiconductor factories will be established.
“Overall, we are optimistic about establishing the entire ecosystem in India. In the future, more and more of these pieces will come from India,” Jain said.
Electronic component manufacturers association ELCINA estimates India’s electronic components manufacturing base is worth more than $11 billion, while demand exceeds $40 billion.
ELCINA Secretary General Rajoo Goel said India needs a special program for the remaining components to complete the ecosystem.
“The PLI (Production Linked Incentive) schemes announced so far to support component manufacturing have not been successful because they were not designed for value-added manufacturing. Component manufacturing requires a very high capital investment ratio of 1:1 to 1:3 compared to a ratio of 1:10 or more for equipment manufacturing, which mainly includes assembly, testing and packaging,” he said.
Consultancy Techarc’s Chief Analyst Faisal Kawoosa said that value addition in mobile devices has picked up from 5-6 per cent earlier to up to 28 per cent, and there is a need to give a push to design in India products to enhance value addition.
According to the telecom PLI scheme beneficiary GX Telecom, the industry in India emphasises localisation, with some components and PCBA designs already being produced in India.
“We are increasing our investment plans to ensure localisation of the value chain with USD 60 million ( ₹500 crore), supported by the surge in domestic market demand and aligning with new technology trends,” GX Group CEO Paritosh Prajapati said.
State-owned telecom research arm Centre for Development of Telematics (C-DoT) CEO Rajkumar Upadhyay said the Centre’s effort to push local product development and design has started bearing fruit now.
He said the government has supported several startups through the Telecom Technology Development Fund that are now contributing to the development of 4G, 5G and even 6G technology domestically.
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