Sunday, July 21, 2024
Advertisement
  1. You Are At:
  2. News
  3. Technology
  4. India electronics component manufacturing to creates 2.8 lakh jobs by 2026, set to hit USD 240 bn by 2030

India electronics component manufacturing to creates 2.8 lakh jobs by 2026, set to hit USD 240 bn by 2030

A report by the Confederation of Indian Industry (CII) says that a part used to make electronics (PCBA) is expected to grow by 30 per cent by 2030. The report also suggested several ways to help the Indian electronic industry grow even further.

Edited By: Saumya Nigam @snigam04 New Delhi Updated on: June 23, 2024 10:59 IST
India electronics component manufacturing, to creates 2.8 lakh jobs by 2026
Image Source : REUTERS India electronics component manufacturing to create 2.8 lakh jobs by 2026

As the Indian government are doubling down on making the country a global manufacturing hub, the demand for electronics components and sub-assemblies is likely to scale by USD 240 billion by 2030, paving the way for USD 500 billion worth of electronics production goal while creating at least 2.8 lakhs new jobs by 2026.

A report surfaced on Sunday stated that the priority components and sub-assemblies including PCBAs, are projected to grow at a robust PCBAsof 30 per cent, reaching USD 139 billion by 2030, according to the report by the Confederation of Indian Industry (CII), which suggested key recommendations to craft a scheme to help the industry further.

Last year, the demand for components and sub-assemblies stood at USD 45.5 billion to support USD 102 billion worth of electronics production.

The report identified five priority components/sub-assemblies of batteries (lithium-ion), camera modules, mechanicals (enclosures etc.), displays and PCBs, categorised as high priority for India.

The report mentioned that they cumulatively accounted for 43 per cent of the components demand in 2022 and are expected to grow to $51.6 billion by 2030.

These components have either a nominal production in India or are heavily import-dependent.

"Similarly, PCBA is a high potential category for India since most of the demand is met by imports. This segment is expected to grow by 30 per cent, leading to a demand creation of $87.46 billion by 2030,” the report noted.

The report has further recommended that crafting a scheme will further aim at providing fiscal support for select components and sub-assemblies in the range of 6-8 per cent.

“The fiscal support is to be extended for a period of 6 to 8 years to ensure adequate time for scaling up and enhancement in value addition,” it added.

Additionally, the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) 2.0 should be introduced with subsidy support ranging from 25 per cent to 40 per cent to support potential investors across brownfield and greenfield categories.

“The import tariffs on priority sub-assemblies and components like camera modules, display modules, mechanicals, need to be urgently rationalised in line with key competing economies,” added the CII report.

“The creation of export demand for India-made products have the twin advantages of increasing export volumes and helping boost domestic manufacturing of components and sub-assemblies,” according to the CII.

The policy support will help in various economic benefits arising from the development of the components and sub-assemblies ecosystem in India.

ALSO READ: Infinix GT 20 Pro Review: A budget gaming smartphone with appreciable perfomance

Inputs from IANS

Advertisement

Read all the Breaking News Live on indiatvnews.com and Get Latest English News & Updates from Technology

Advertisement
Advertisement
Advertisement
Advertisement