IT Ministry’s Task Force Suggests Massive INR 44,000 Crore Push for Indian Electronics Firms
As the government doubles down on electronics manufacturing, including semiconductors, to make the country a global supply chain hub, a task force set by the IT Ministry is near finalising its report, suggesting a massive Rs 44,000 crore push for domestic companies till 2030.
New Delhi, July 4: As the government doubles down on electronics manufacturing, including semiconductors, to make the country a global supply chain hub, a task force set by the IT Ministry is near finalising its report, suggesting a massive Rs 44,000 crore push for domestic companies till 2030. Established in January this year, the MeitY task force, led by Ajay K Sood, the principal scientific advisor to the government, has key industry figures like Ajai Chowdhry, Founder of HCL and Chairman of EPIC Foundation and Sunil Vachani, MD of Dixon Technologies.
According to reports, the task force also pitches for extending the production-linked incentive (PLI) scheme until 2030, which has helped global players like Apple create a robust supply chain and increase exports, along with enhancing taxation policies for research and development. According to Chowdhry, the aim is to reduce India's electronics import bill. Global IndiaAI Summit 2024: Union Minister Ashwini Vaishnaw Says Collective Efforts Will Harness AI’s Potential While Limiting User Harms.
“The next five years will play a decisive role in shaping the next few decades for electronics product design and manufacturing in India. If we want to be a Product Nation and compete directly with China to cater to the global electronics market, the country will need to put forth its best minds who understand business,” Chowdhry, also Chairman-Mission Governing Board, National Quantum, said last month.
According to the task force members, the last 10 years have ensured Indian companies revitalise themselves and Prime Minister Narendra Modi’s call for ‘Aatmanirbharta' has been met with much appreciation together with on-the-ground action. “It is time now to transition and focus on value-added manufacturing as well as ‘design in India’ products, thereby positioning India as a creator of global brands,” they said. Global IndiaAI Summit: OpenAI VP Srinivas Narayanan Says ‘AI Added Speed to Dynamic Entrepreneurial Ecosystem in India’.
Meanwhile, the domestic electronics industry has also urged the government to look into lowering tariffs on inputs in the upcoming budget and scale up local manufacturing to further beat China and Vietnam. The country’s electronics manufacturing output reached a record-breaking $115 billion in FY24, with $29.1 billion in electronics exports, making electronics the fifth-largest export category from the country. Mobile phones alone contributed over 54 per cent of this export, with production out of $51 billion in FY24. The country aims to reach $300 billion in electronics manufacturing by 2030.
(The above story first appeared on LatestLY on Jul 04, 2024 11:07 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).