Indian Electronics to be $300 billion industry
by 2025
(Report Copy Attached)
·
It is PM’s
vision to make India a significant player in global supply chains in Electronics.
“Local goes Global”
·
Minister of
State Shri Rajeev Chandrasekhar releases Vision Document (Volume-I) on “Increasing
India’s Electronics Exports and Share in GVCs”
·
Document released
as part of MeitY’s vision 1000 Days for ESDM Sector towards
achieving One Trillion Dollar Digital Economy
Inspired by the Prime Minister’s vision to increase exports and
India’s share in global supply chains “Local Goes Global”, the Ministry of Electronics
& Information Technology on 2 November 2021 released Volume-I of Vision Document
on “Increasing India’s Electronics Exports and Share in GVCs”. This comes as a part
of MeiTY’s Vision 1000 Days that sets a target of achieving
$1 Trillion Digital Economy for Atma Nirbhar Bharat.
The Vision document (Volume-I) focuses on the opportunities and
key inputs to increase India’s share in the Global Value Chain and build large-scale
manufacturing capabilities to achieve a substantial share in global electronics
export. It has been prepared by Indian Cellular Electronics Association (ICEA) in
consultation with the industry. The Vision Document is a call to action which analyses
the challenges and outlines key success factors for increasing electronics exports,
while benchmarking against competing nations. It makes recommendations to increase
scale, competitiveness and domestic value addition over the next 1000 days.
Rajeev Chandrasekhar, Minister of State, Ministry of Electronics
&IT and Skill Development & Entrepreneurship released the vision document
titled ‘Increasing India’s Electronics Exports and Share in GVCs – towards Atmanirbhar Bharat’.
Addressing the event and speaking about the transformation of
electronics manufacturing space after pandemic, Rajeev Chandrasekhar said that post
covid world represents coming together of many things/elements
including the renewed confidence under visionary leadership of Prime Minister Narendra
Modi, policy making, investments, jobs and a strong preference for trust in Global
Value Chains. These together present an unprecedented - never before opportunity
for India in Electronics Sector. He further said that the industry needs to focus
on expanding product categories which can serve new markets and new types of consumers.
We are in a world where hardware plays less role in innovation and software plays
more significant role. In this scenario India has the ability to use its strength
in electronics design, systems design along with electronics manufacturing.
Commenting on collaboration with industry in realizing the vision,
Shri Rajeev Chandrasekhar said that we will approach the industry as a partner and
will fully support it in its efforts to increase the overall competitiveness of
the economy. He quoted the Hon’ble PM’s Speech “ Yahi Samay Hai “, signifying
the narrow window of opportunity available in the electronics sector.
The push for the ESDM sector is preceded by India emerging as
the 2nd largest manufacturer of Mobile handsets in the world in volume terms, producing
30 crore handsets (2020-21) as against 6 crore handsets in 2014-15. Over 200 units
are manufacturing cellular mobile phones and parts in the country which is up from
only 2 units in 2014. Production of mobile handsets has grown from INR 19,000 crore
in 2014-15 to 2,20,000 crore in 2020-21. This has given
a significant boost to the sector and to the vision of achieving self-reliance under
the Atma Nirbhar Bharat.
The Vision Document is the first of a two-part series. The second
volume will present product-wise strategies and forecasts as part of the campaign
to build a US$1 trillion Digital Economy, in pursuit of reachingUS$5 trillion GDP.
The Vision Document makes recommendations on short-term (1-4 years) and long-term
(5-10 years) strategies to increase electronics exports from India, shift of electronics
manufacturing ecosystem investments, and expand exports by increasing competitiveness
and scale. The Document critically analyses the impact of tariffs on inputs on India’s
competitiveness, and makes specific recommendations in view of the goals set by
the Prime Minister. The Vision Document also emphasises
on the strategies to build Domestic Champions and the need for linking their products
with Lead Firms and GVCs. It seeks to protect Domestic Champions from unfair trade
practices, while requesting policy support in the areas of financing and design
development. It identifies key electronic products, namely mobile phones, IT hardware,
hearables / wearables etc, which provide the highest potential
for exports, in view of massive global demand for these products.
The Release ceremony was conducted at the New Media Centre, Delhi
and was attended by a wide spectrum of people from the Industry/Industry associations,
MeitY, Academia amongst others. Opening remarks were given
by Mr Pankaj Mahindroo, Chairman,
ICEA. A Presentation on the Vision Document was given by
Dr Harsh Vardhan, Chairman,
IKDHWAJ Advisers LLP. Remarks were also given by Mr Hari Om Rai, CMD, LAVA Mobiles, Mr. Virat
Bhatia, Chairman FICCI National Committee on ICT and Mobile Manufacturing. Mr. Ajay
Sawhney, Secretary MeitY also
briefed the media about the vision document.