India takes on China, Vietnam in electronics manufacturing; eyes $300 billion in native manufacturing by FY26

NEW DELHI: India’s counter-attack on China and Vietnam in manufacturing of electronics is ready to get further fire-power.
On goal is $300 billion in output over the subsequent 4 years, together with $120 billion reserved for exports; broadening of product-basket for incentives; specifically crafted massive industrial zones with trendy services; and permissions for factories which will maintain as much as as many as 1 lakh staff with dormitories, kitchens, medical set-ups, and housing complexes.
The plan is to offer scale to electronics manufacturing arrange that may finally result in the creation of a powerful provider eco-system, large employment alternatives, and international servicing.
IT and electronics minister Ashwini Vaishnaw and junior minister Rajeev Chandrasekhar introduced ‘Vision Document 2.0’, ready by their ministry and introduced by the India Cellular & Electronics Association via its chairman Pankaj Mohindroo.
Vaishnaw stated that the federal government, which has already dedicated practically $17 billion over the subsequent six years throughout 4 production-linked incentive (PLI) schemes (semiconductor and design; smartphones; IT {hardware}, and elements) shall be popping out with extra classes the place advantages shall be prolonged for native manufacturing, These are more likely to embrace hearables and wearables, industrial and auto electronics, and telecom tools.
The authorities needs the cost to come back not solely from international gamers corresponding to Taiwanese Foxconn and Wistron (each Apple’s contract producers) and Korean Samsung, but additionally from ‘home champions’ corresponding to Optiemus, Dixon, and Lava.
Vaishnaw stated he has spoken to the labor ministry relating to points in establishing massive factories that may have as many as one lakh workers, and have housing complexes for the employees.
Also, he stated that his ministry is figuring out land for constructing huge built-in manufacturing zones (going as much as as a lot as 1,000 acres) with all requisite services corresponding to land, energy, roads, and connectivity built-in, a lot consistent with what’s allotted in China and Vietnam.
The trade welcomed the proposal. “The plug-and-play mannequin is certainly welcome. It takes away considerations round land acquisition, highway and infra, energy, and connectivity,” Sunil Vachhani, chairman of Dixon said.
Lava’s chairman Hari Om Rai also said that local companies need to go global while expanding manufacturing within India.
Minister Chandrasekhar said growth of digital consumption and diversification of global value chains will help achieve the targets.
Chinese conspicuous by absence
The mega meet of local and global electronics makers did not have Chinese players as participants or speakers.
Asked what role does India sees for the Chinese in Indian electronics manufacturing, junior IT & electronics minister Chandrasekhar said, “We don’t have any particular view… the concept of trust in value chain is an important attribute in post-Covid world and any investment and any investment partner that meets the trust criteria can manufacture.”

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