Major boost to Atmanirbhar Bharat, India records 5.5 lakh crores of electronics manufacturing; aims at broadening domestic market

India has recorded 5.5 lakh crores of electronics manufacturing, Electronics Minister Ashwini Vaishnaw said while releasing the 2nd Volume of Vision Document on Electronics Manufacturing, reported Zee Business reporter Ambarish Pandey.

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Vaishnaw also added, " This was unthinkable a few years back. Now we've taken aim of US$300, which is about 22 lakh crores."

The vision report also chalks out a five-part strategy to reach the US$300 billion goal.

What is the vision report?

On Monday, the Ministry of Electronics and Information Technology, in association with ICEA, released a 5-year roadmap and Vision Document for the electronics sector today, titled “$300 bn Sustainable Electronics Manufacturing & Exports by 2026.”

This roadmap is the second volume of a two-part Vision Document – the first of which titled “Increasing India’s Electronics Exports and Share in GVCs” was released in November 2021.

This Vision document gives detailed targets and roadmap for India’s transformation into US$300 billion electronics manufacturing powerhouse by 2026, from the current US$75 billion

Exports are expected to increase from projected US$15 billion in 2021-22 to US$120 billion by 2026, mentions Vision Document.

Production projections

In the report, there is a year-wise break-up and production projections for the various products that will lead India’s transformation into a US$300 billion electronics manufacturing powerhouse, from the current US$75 billion.

The key products that are expected to lead India’s growth in electronics manufacturing include Mobile Phones, IT Hardware (laptops, tablets), Consumer electronics (TV and audio), Industrial electronics, Auto electronics, Electronic components, LED Lighting, Strategic electronics, and others.

Domestic market expected to increase

The five-part strategy to reach the US$300 billion goal was also discussed in the vision report. The domestic market is expected to increase from US$65 billion to US$180 billion over the next 5 years. This will make electronics amongst India’s 2-3 top ranking exports by 2026. Of the US$300 billion, exports are expected to increase from the projected US$15 billion in 2021-22 to US$120 billion by 2026.

As per the strategy which is based on an “all of the government” approach, it sharply focuses on broadening and deepening electronics manufacturing in India. This, by building competitiveness and scale by attracting global electronics manufacturers/brands, shifting and developing sub-assemblies and component ecosystem, building a design ecosystem, nurturing Indian champions and steadily removing cost disabilities faced by India.