The India Cellular and Electronics Association (ICEA), which includes Lava, Apple India, and Micromax as members, has sought incentives from the government to manufacture printed circuit boards (PCBs) in India. In a report calling for making India a global hub for PCBs, the industry body said it could present a $100 billion export opportunity for the country over the next five years, given the right incentives.
“With the required stimulus, there is a guaranteed $100 billion achievement, which we are ready to promise, and we have already promised. So the ball is squarely in the court of the government right now,” said Pankaj Mohindroo, Chairman of the ICEA. Mohindroo said while the government’s production linked incentive (PLI) scheme will mitigate disabilities in mobile phones, this is a separate incentive being sought for manufacturing and export of PCBs in general.
According to the report, the industry can achieve $109 billion in exports from India if the government provides 6% incentive to it. Without support, the same is estimated to fall to $4 billion, the report states.
Further, the ICEA’s report noted that PCBs constitute about 40% of the bill of materials (BoM) cost of electronic products, and present a $600 billion market globally. They are required for growing product segments like mobile phones, tablets, notebooks and desktop PCs, smart TVs, audio devices and more. “As PCBs start getting manufactured here, and other components are manufactured here too, it will unleash a virtuous cycle of development of that entire industry,” Mohindroo said.
