Prime Minister Narendra Modi has set a bold goal: make India’s electronics sector worth ₹41.98 Lakh cr by 2030. Right now, the electronic market is valued at 13 lakh cr apr. However, with huge investments and strong government support, India is on the move. Major semiconductor deals and new tech projects are driving this growth.
Let’s explore the goals that the electronics manufacturing industry in India aims to achieve in the coming years.
Government Investments 2024
Speaking at the Semicon India 2024 event in Greater Noida, PM Modi highlighted the country’s strengths in the semiconductor industry. The Indian government has approved a part of the budget in semiconductor investments.
As per the reports, Prime Minister Modi’s speech at Semicon India 2024 has sparked a rise in semiconductor stocks. He emphasised India’s commitment to expanding its semiconductor industry. Mr Modi also highlighted major investments and partnerships with 113 universities and institutions. The goal of all these actions is to encourage semiconductor production and education.
Key Investments
- Tata Group is planning to set up India’s first major chip manufacturing plant.
- Micron Technology Inc., a US-based company, is looking to establish an assembly facility in Gujarat.
International Partnerships
- Tower Semiconductor Ltd. from Israel is thinking about a 10 lakh cr partnership with billionaire Gautam Adani. They are planning to build a semiconductor fabrication plant in western India.
As per the reports, a formal proposal has not yet been submitted to the Indian government.
Future Plans of India Electronics Sector
Kurt Sievers, CEO of NXP Semiconductors NV, has announced that the Dutch chipmaker will invest in India. They aim to enhance their research and development activities.
Indian Electronics Industry 2024
The Indian electronics market is one of the fastest-growing globally. It is supported by strong government policies like Make in India and Digital India.
Here are the key growth highlights of electronic manufacturing industry in 2024
Major Policies and Initiatives:
- National Policy on Electronics 2019
- Production Linked Incentive (PLI) Scheme
- Scheme for Promotion of Manufacturing of Electronics Components and Semiconductors (SPECS)
- Electronics Manufacturing Clusters (EMC) 2.0
These initiatives, aimed at electronics sector growth tend to expand the overall production capabilities.
Significant Achievements:
- India is now the second-largest mobile phone manufacturer globally.
- Domestic production meets nearly all of the country’s mobile phone demand.
This marks aa smartest shift from past dependence on imports.
Economic Contribution and Future Goals:
- The electronics sector contributes about 3.4% to India’s GDP.
- The government targets 25.188 lakh crore in manufacturing and ₹10.08 lakh crore in exports by 2026.
Projected Growth Statistics and Highlights: Electronics Sector in India
- India Electronics Market Production: It is estimated at ₹7.56 lakh cr, with a goal of ₹25.19 lakh cr by 2026.
- Electronics Market Exports: Currently around ₹1.93 lakh cr, there is a target of ₹10.08 lakh cr by 2026.
- Electronics Market Growth| GDP Contribution: 3.4% of India’s GDP.
- Mobile Phones: India is the second-largest global manufacturer.
- Government Investment in Electronic Manufacturing Industry: ₹1.43 lakh cr is reserved for industry growth.
- Employment: The electronics industry aims to offer 10 million jobs by 2025.
- FDI: 100% allowed under the automatic route for electronics.
- India has a strong R&D infrastructure and a vibrant start-up ecosystem.
Conclusion
The country offers attractive opportunities for investment in the global electronics sector. India’s push to become a tech powerhouse is gaining momentum. With significant investments and global partnerships, the country is set to transform its electronics industry globally.
Source: MoneyControl , IndiaElectronicsExpo
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