India Will Manufacture Rs 2 Lakh Crore Worth Electronics Products By 2026: Find Out How?
The $838.85 billion worth electronics industry is pegged to spur once the ongoing pandemic conditions start to fade out, as the current scenario marks global supply slump of semiconductor chips, another consequence of the Covid-19 pandemic.
The Government of India-formulated National Policy on Electronics, 2019, had pegged the country’s electronics production target to hit the $400 billion mark by the financial year 2025-26.
However, due to the unprecedented disruption caused by the Covid-19 pandemic, the India Cellular and Electronics Association (ICEA) expects the country to reach the USD 300 billion-mark by FY26, stated the industry body earlier this week.
India Set to Reach Rs 2 Lakh Crore Worth Electronics Production
According to ICEA, taking into consideration the supply chain pressure, and other multiple factors affected due to the Covid-19 pandemic, the country is pegged to produce Rs 2 lakh crore or $300 billion worth electronics by FY26.
“The NPE 2019 targets for electronics production in 2025-26 at USD 300 billion appears to be more realistic considering the disruption on account of COVID-19 in the past 18 months which has been aggravated with the new variants of the COVID-19 virus such as Omicron,” stated the industry body’s report published on Monday.
This target by ICEA is $100 billion less than that set by NPE 2019, which was $400 billion by FY26.
However, despite falling short of the set target by $100 billion, ICEA aims for a 400% surge in the value compared to the present level, which as per the body’s Chairman Pankaj Mohindroo, will require significant policy initiatives and efforts by the Government, to create a healthy environment for the electronics manufacturing ecosystem.
“If India is able to achieve the manufacturing target of $300 billion for electronics, the domestic market demand may be met in full by such manufacturing.
This necessitates that $120 billion worth of electronic products would be required to be exported to the global market,” added the ICEA report.