'Electronics production must grow at 22% to hit $500 billion target'

In FY 2024, the total electronics production stood at $115 billion

Electronics production in India will need to grow at an annual growth rate of 20-22 per cent to reach the $500 billion target by 2030, said Pankaj Mohindroo, chairman, India Cellular and Electronics Association (ICEA).

India’s total electronics production for the year stood at $115 billion in FY24, of which around $52 billion was mobile phones, according to ICEA estimates.

The electronics industry body is working on a detailed action plan towards achieving the target, said Mohindroo, and a presentation is likely to be made before the finance minister and the Prime Minister's Office by the end of this month.

 

The $500 billion electronics production target was recently announced by Prime Minister Modi during the Semicon India event last week.

Speaking at a press conference on Tuesday, Mohindroo said that India’s electronics sector was on course to achieve the $300 billion production goal by the end of 2026, which was set earlier, and for reaching the $500 billion milestone, some sectors within the ecosystem will have to perform disproportionately well.

“If we have to lift ourselves, then some sectors, for example clean tech, solar power, etc., will have to fire disproportionately. A few of these sectors grow on an unprecedented scale, and that's how you lift economic development up. Also, the sector is very strategic and high employment generating, which is a plus,” said Mohindroo.

By the end of the decade, the industry estimates the mobile phone ecosystem to grow to $180 billion in production value, out of the total $500 billion overall target.

For this, Mohindroo said that attracting big players to India and increasing the country's participation in global value chains (GVCs) was key to growth, apart from skilling the workforce to match industry demands.

He also said that a special focus is needed on increasing production in areas such as consumer electronics, hearables and wearables, auto, and medtech, among others, to boost the overall manufacturing ecosystem in the country.

Tariff rationalisation, creating an enabling environment, and focusing on different segments of the electronics sector are some of the areas which ICEA plans to discuss with the government in the upcoming meeting.