India's electronic manufacturing may reach US$ 500 bn by 2030: CII report

The Confederation of Indian Industry (CII) has released a report highlighting the critical actions India needs to take to transform its electronic sector ecosystem from an 'import-dependent assembly-led manufacturing' to 'component-level value-added manufacturing.' According to the report, in 2022-23, the demand for components and sub-assemblies stood at US$ 45.5 billion to support US$ 102 billion worth of electronics production. This demand is expected to scale to US$ 240 billion to support US$ 500 billion in electronics production by 2030. The priority components and sub-assemblies, including PCBAs (Printed Circuit Board Assembly), are projected to grow at a robust CAGR of 30% and reach US$ 139 billion by 2030. The report recommends the government take key actions, including introducing a scheme to provide fiscal support, SPECS 2.0 (Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors), and imposing import tariffs on components like camera modules, which are expected to cumulatively account for 43% of the components demand in 2022 and grow to US$ 51.6 billion by 2030. These components either have nominal production in India or are heavily import-dependent. India can hardly afford to sustain this trend of importing priority components.

The report also highlights the significant opportunities for India in the PCBA segment, as most of the current demand is met through imports. This segment is expected to grow by 30%, creating a demand of around US$ 87.46 billion by 2030. With the right policy support, India can leverage its skilled workforce and emerging capabilities to capture a larger share of this high-potential market. The report suggests that these policy interventions can lead to various economic benefits, including job creation to the tune of approximately 2.8 lakh by 2026, an increase in domestic value addition, a reduction in import dependency, and an increase in GDP, ultimately positioning India as a global hub for electronics manufacturing.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.