The Confederation of Indian Industry (CII) report focuses on transitioning India’s Electronics sector ecosystem from an ‘import dependent assembly led manufacturing’ to ‘component level value-added manufacturing’.

Key findings of report:

• Electronics production is expected to grow from USD 102 billion in 2023 to USD 500 billion by 2030.
• China accounts for 62% of India’s electronic component imports.
• It identifies five priority components/sub-assemblies- batteries (lithium-ion), camera modules, mechanicals (enclosures etc.), displays and Printed Circuit Board.

Challenges for becoming a global hub for components and subassemblies:

• Higher import tariffs impacting global competitiveness.
• India trade agreements are primarily with low consumption and high production countries leading to trade deficits.
• Domestic industry has extremely low investment in R&D leading to lower revenue and manufacturing potential.

Recommendations

• States should make available land at concessional rates and also provide Plug & Play infrastructure. 
  • ‘Plug and play’ infrastructure refers to ready facilities in terms of building, power-water-sewage connectivity, road connectivity,etc
• Public-private partnership in government funded institutions to encourage access to infrastructure to smaller companies.
• Need to rationalize the import tariffs on priority sub-assemblies and components.