ICEA To Present Roadmap For Electronics Manufacturing To Finance Minister

New Delhi, Sep 18 (KNN) As India sets its sights on reaching USD 500 billion in electronics manufacturing by FY2030, the India Cellular and Electronics Association (ICEA) announced plans to meet with Finance Minister Nirmala Sitharaman and other senior government officials to strategise for the sector’s growth.

“We are keen to present our roadmap to the Finance Minister and the Prime Minister’s Office (PMO) on the essential steps needed for the industry to achieve this ambitious vision,” ICEA Chairman Pankaj Mohindroo told reporters on Tuesday.

Currently valued at USD 115 billion, India's electronics industry will need to grow at a compound annual growth rate (CAGR) of over 20 per cent to meet the USD 500 billion target by FY30, Mohindroo stated.

Key topics for discussion with government officials will include enhancing India's electronics manufacturing capabilities and increasing its participation in Global Value Chains (GVCs), which play a pivotal role in modern manufacturing through global collaboration across design, production, marketing, and distribution activities.

Mohindroo emphasised the critical importance of the GVC model for India's success, adding that the industry hopes to explore ways to significantly boost India's role in these global networks.

ICEA also intends to discuss issues such as tariff rationalisation, ease of doing business, and necessary reforms to support this growth.

India’s electronics production has seen substantial growth, nearly doubling from USD 48 billion in FY17 to USD 101 billion in FY23. Mobile phones, now accounting for 43 per cent of total electronics production, have been a key driver of this expansion.

In FY23, electronics exports made up 5.32 per cent of India’s total merchandise exports, reflecting the sector’s rising contribution to the economy.

During the recent ‘Semicon India 2024’ event, Prime Minister Narendra Modi urged the industry to drive the electronics sector towards the USD 500 billion goal and create 6 million jobs by the end of the decade, further underscoring the government's commitment to this growth trajectory.

(KNN Bureau)