Monday, January 30, 2023

India's electronic exports would surpass Rs 1.28 trillion in the upcoming fiscal year: MoS IT

Electronics export from India to cross Rs 1.28 lakh crore next fiscal: MoS IT


Delhi, India: According to Rajeev Chandrasekhar, India's minister of state for electronics and information technology, exports of electronic goods are anticipated to exceed Rs 1.28 lakh crore in the following fiscal year. In an interview with PTI, the minister stated that the government is now planning to introduce a brand-new production-linked incentive program for manufacturers of IT hardware and componentry, wearable technology, and wearable devices.

"In terms of electronics manufacturing as a whole, we anticipate exports worth at least Rs 1.28 lakh crore in the coming year. "In 2023 and 2024, mobile phone exports will reach Rs 1 lakh crore, as I have already stated," Chandrasekhar stated.

He added that because mobile phones are the segment of electronics that is expanding at the fastest rate worldwide, there has been a focus on them.

"Scale is a factor in value addition in manufacturing." To begin, you must reach the scale. The value-adding industry is the component industry. If manufacturing isn't done on a large enough scale, components won't come. The minister stated, "The next stage of our PLI is to acquire components PLI, hearable-wearable PLI, and the IT server PLI."

He said that the government will support all of the players in the local ecosystem 100% of the time.

The Association of Electronic Component Manufacturers (ELCINA) has requested that the government allocate USD 10 billion, or approximately Rs 80,000 crore, over eight years to increase production of electronic components and key modules other than semiconductors.

The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) has been requested to be extended for a further four years, with an increased expenditure of Rs 16,000 crore included in the Union Budget for the years 2023 and 2024.

The upgraded PLI, according to ELCINA, is expected to facilitate investments worth approximately Rs 64,000 crore and produce USD 24 billion (approximately Rs 1.95 lakh crore) for all components other than semiconductors.

The organization representing the industry has also requested that income tax relief for investments in research and development be reinstated.

Additionally, it has requested a PLI program that focuses on domestic electronics manufacturing and services businesses.

The India Electronics and Semiconductor Association (IESA) has asked the government to change the PLI program into a design-led manufacturing program and impose a 10% import duty on imported electronics equipment and assembled printed circuit boards (PCBs) in order to boost domestic production.

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