India on path to achieve $300 bn electronics manufacturing target: Union Minister Rajeev Chandrasekhar

New Delhi, June 20 (KNN) Union Minister of State for Electronics and IT Rajeev Chandrasekhar on Tuesday said that India is on the right path to achieve USD 300 billion electronics manufacturing target.

As per the Vision Document 2.0 prepared by the IT Ministry and the India Cellular and Electronics Association (ICEA), India can reach USD 300 billion worth of electronics manufacturing and exports by 2025-26 if specific product segments with high potential for scale are shortlisted and catered to by way of incentives and policy measures.

The IT minister in a tweet said that the Electronics manufacturing in 2014 was about USD 12 billion and India's target in just over a decade by 2026 is USD 300 billion i.e. 20-25x growth in 11 years.

The growth has been led by locally-manufactured mobile phones, India's electronics industry saw a record exports of electronic goods at an estimated Rs 1,85,000 crore in FY22-23 compared to Rs 1,16,936 crore in FY21-22 marking a whopping 58 per cent increase.

According to data by ICEA, mobile phone exports made history by crossing the USD 10 billion threshold for the first time in any fiscal year, reaching an estimated USD 11.12 billion (over Rs 90,000 crore) in FY23.

Continuing on the path of import substitution, India's domestic electronics market is estimated to reach at best USD 150-180 billion from the current USD 65 billion over the next 4-5 years.

"India is one of the leading contenders for alternate solutions for global electronics companies. The electronics sector has the potential to become one of the top exports of India in the next 3-5 years. Electronics exports may account for significant contributions to the Indian economy in terms of foreign exchange earnings and employment generation," said the document.  (KNN Bureau)