India’s Electronics Exports Surge; Fueled By PLI Scheme And Global Investments: IESA Chief

India’s electronics exports have seen a significant rise, largely driven by the government’s Production-Linked Incentive (PLI) scheme and electronic manufacturing clusters, according to Ashok Chandal, President of the India Electronics and Semiconductor Association (IESA).

In an interview with IANS on Wednesday, Chandal credited these initiatives for boosting local production and attracting global investors to the country.

PLI Scheme Drives India’s Growth

Chandal stated that the government’s strategic policies have addressed critical industry gaps, enabling India to compete with established manufacturing hubs such as China and Vietnam.

He emphasized that the rising domestic demand for electronics has further strengthened the push for local manufacturing.

“Government policies, particularly the PLI scheme and ‘Make in India,’ have played a pivotal role in making Indian electronics manufacturing cost-competitive,” Chandal explained.

He also highlighted that the government recently began disbursing reimbursements under the PLI scheme across various sectors, including electronics, semiconductors, automotive, and pharmaceuticals.

This, he added, reflects the government’s commitment to its promises, which will encourage more investment and expansion in manufacturing.

Apple’s Expansion Boosts India’s Global Visibility

One of the biggest contributors to India’s manufacturing transformation is Apple, which has significantly increased its production operations in the country.

Chandal pointed out that Apple’s contract manufacturers, such as Foxconn and Pegatron- now partially under the Tata Group- have helped establish India’s credentials in high-tech manufacturing.

“This has given India immense global visibility. Manufacturing for Apple is a testament to India’s capability to deliver high-quality electronics,” Chandal noted.

The impact of Apple’s expansion is clear, with the tech giant now accounting for more than 50% of India’s total electronics exports.

Other Sectors Show Strong Potential

While smartphones remain the dominant force behind India’s electronic exports, other sectors are also gaining traction.

Chandal expressed optimism about the potential growth of automotive electronics, electric vehicles (EVs), medical devices, industrial IoT, and consumer electronics.

India’s electronics market is projected to reach $500 billion by 2030, opening up substantial export opportunities.

However, Chandal stressed that increasing domestic value addition remains a critical focus to ensure the country’s long-term success in the global electronics market.

Strengthening Supply Chains

To maintain sustained growth, Chandal emphasized the importance of strengthening India’s supply chain resilience and bolstering its research and development (R&D) capabilities.

These factors will be crucial in ensuring that the country remains competitive on the global stage.

In conclusion, India’s electronics sector is poised for continued growth, with government policies, global investment, and sectoral diversification playing key roles in shaping the country’s manufacturing landscape.

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