India is making significant efforts to boost its electronics manufacturing industry with the goal of establishing itself as a prominent player in the global market. The electronics industry is witnessing remarkable growth and advancement, with a special emphasis on expanding manufacturing operations in India, particularly in the realm of semiconductor chips and electronics components. Noteworthy developments include the production of India’s first locally developed semiconductor chip in Gujarat, the initiation of state-level electronics component manufacturing programs in Tamil Nadu, and the implementation
of various PLI (Production Linked Incentive) schemes aimed at promoting local production. Furthermore, efforts are underway to establish a repairability index for electronics to tackle e-waste, and the government is actively promoting research and development as well as innovation within the sector.
India is currently enacting a series of strategic measures to enhance its electronics manufacturing sector with the aim of positioning itself as a key player on the global stage in the field of electronics production.
The “Make in India” initiative, launched to transform India into a global manufacturing hub, focuses on enhancing industrial capabilities, fostering innovation, and creating world-class infrastructure. This initiative aims to position India as a key player in the global economy by attracting investments, promoting skill development, and encouraging domestic manufacturing.
The Phased Manufacturing Programme (PMP) was introduced by the government to boost the domestic value addition in the manufacturing of mobile phones as well as their sub-assemblies and parts. The primary objective of this scheme is to stimulate high-volume production and establish a robust local manufacturing framework for mobile devices.
To enhance the growth of domestic manufacturing and foster investment in the mobile phone value chain, including electronic components and semiconductor packaging, the government introduced the Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing. This initiative offers incentives ranging from 3% to 6% on incremental sales of products manufactured in India within target segments such as Mobile Phones and Specified Electronic Components.
Another initiative is the PLI scheme for passive electronic components, with a budget of INR 229.19 billion. This scheme aims to promote the domestic manufacturing of passive electronic components such as resistors and capacitors. These components are integral to various industries such as telecom, consumer electronics, automotive, and medical devices.
The Semicon India Program, initiated in 2021 with a considerable budget of ₹76,000 crore, aims to bolster the domestic semiconductor sector through a mix of incentives and strategic alliances. The comprehensive initiative not only focuses on the development of fabrication facilities (fabs) but also emphasizes on enhancing packaging, display wires, Outsourced Semiconductor Assembly and Testing (OSATs), sensors, and other vital components crucial for a thriving semiconductor ecosystem.
The Indian government is promoting research and development, along with fostering innovation, within the electronics industry. India is actively engaging in collaborations with international firms, with a specific focus on high-tech manufacturing and chip design.
India’s progress in establishing itself as a prominent destination for electronic manufacturing on the global stage has been characterized by a series of deliberate policy decisions, significant advancements in infrastructure, and a growing interconnectedness with the international community. Through careful leveraging of present circumstances and the diligent resolution of pertinent obstacles, India continues to make substantial strides towards the realization of its ambitious vision.
Devendra Kumar
Editor
