Emboldened By PLI, Govt Sets $500 Bn Electronics Production Target By 2030

New Delhi, Apr 1 (KNN) India’s electronics manufacturing sector is witnessing a surge in global investor interest, driven by flagship government initiatives aimed at boosting domestic production.

Key programs such as the Production Linked Incentive (PLI) scheme, the India Semiconductor Mission (ISM), and the newly launched Electronics Component Manufacturing (ECM) scheme are attracting foreign investments and fostering industry growth.

The Indian government has set an ambitious target of achieving USD 500 billion in electronics production by 2030. Several states, including Odisha, Tamil Nadu, Andhra Pradesh, Karnataka, Gujarat, and Uttar Pradesh, are competing to attract foreign firms with investment-friendly policies and expedited approvals.

Industry leaders highlight the importance of partnerships between Indian and global companies to facilitate technology transfer, reduce costs, and access international markets.

“The interest from the government is now clear with the three flagship schemes – the PLI, ISM, and ECM schemes. We see this as a winning trio,” said Ashok Chandak, president of the India Electronics and Semiconductor Association (IESA).

Indian conglomerates are also entering the electronics sector. Companies such as RRP Semiconductor, Suchi Semicon, and Polymatic are actively seeking joint ventures with international firms to manufacture critical components locally.

Recent roundtable discussions in Gandhinagar saw participation from 55 Japanese firms, 25 from Singapore, and 25 from Taiwan, underlining the growing global interest.

Despite the optimism, challenges remain. Concerns over Press Note 3, which mandates government approval for investments from bordering nations like China, persist.

Some industry voices fear excessive Chinese involvement could lead to market dominance. Experts suggest prioritizing partnerships with Taiwan, Korea, and Japan, which have established expertise in electronics manufacturing.

With increasing government support, state-level incentives, and international collaborations, India’s electronics manufacturing sector is poised for significant growth, potentially emerging as a global hub in the coming years.

(KNN Bureau)