India's Electronics Sector Seeks Major Boost to Reduce Import Dependency

Elcina, India's oldest electronics industry body, seeks a Rs 72,500 crore package to boost local production and cut import reliance. The industry faces an input deficit projected at USD 248 billion by 2030, with plans to offset this through non-semiconductor component support, creating 50 lakh jobs by 2030.

India's electronics sector is advocating for substantial government intervention to enhance local production and minimize dependency on imports. The Electronics Industries Association of India, or Elcina, has proposed a Rs 72,500 crore package aimed at addressing a projected demand-supply deficit in electronic components, anticipated to rise to USD 248 billion by 2030.

Elcina's Secretary General, Rajoo Goel, emphasized the necessity of this support, highlighting that investing in electronic components currently yields lower returns compared to finished products. A proposed USD 8.57 billion package could facilitate the expansion of the industry, consisting of USD 2.14 billion for capital expenditure and USD 6.43 billion as production-linked incentives.

If implemented, this initiative could attract an additional USD 36 billion in investments by 2030 and generate 50 lakh new jobs. The focus is on supporting non-semiconductor components, which comprise 40% of a product's value, to reduce the projected deficit and bolster domestic manufacturing capacity.

(With inputs from agencies.)