India Aims to Become New Global Hub for Electronics Design

New Delhi, May 3 (KNN) The Indian government is taking steps to incentivise global electronics manufacturers like Apple to increase product design activities in the country.

The Ministry of Electronics and IT (MeitY) has begun consulting with industry groups such as the India Cellular and Electronics Association (ICEA) to formulate new policies toward this goal.

"We have to look at it from a holistic perspective where we also encourage more companies to get into the smartphone, notebooks, and component design ecosystem," said a government official involved in the effort. "It will be an uphill task, but we are confident it can be done", reported ET.

While major electronics brands manufacture many products in India already, the core design work still largely happens overseas at company headquarters.

The government wants to attract more of that high-value design activity and ensure Indian ownership of the intellectual property.

ICEA chairman Pankaj Mohindroo welcomed the move, stating "The government should have a tailored policy framework to encourage global lead firms to choose India as their hub for innovation, design and manufacturing."

Analysts highlight the economic benefits of becoming a design hub in addition to a manufacturing destination.

However, they also caution it could be challenging to shift design resources away from the US and China due to geopolitical sensitivities.

As the effort ramps up, MeitY has engaged Indian Institutes of Technology to study the feasibility of expanding India's electronics design capabilities across the supply chain.

(KNN Bureau)