FTA Incentives Boost Electronics Sector Toward $500B Goal

• Electronics exports to hit $120B by Mar 2026 from $38B
• FTAs with EU/ASEAN expand markets; tackle import reliance
• Rs 7,172cr ECMS projects create 11,800 jobs in 9 states

India's​‍​‌‍​‍‌​‍​‌‍​‍‌ electronics manufacturing sector is coming back with a bang. The sector is now aiming for a valuation of $500 billion by the year 2030, charged with a rise in exports, which are to reach $120 billion by March 2026, from $38 billion in the previous year, and domestic production, which has gone up six times to Rs 11.3 lakh crore over the last ten years. In the last five years, exports have gone up eight times to Rs 3.27 lakh crore, showing the sector's deep integration with global supply chains through projects like semiconductor parks, logistics upgrades, and electronics clusters.

Shiva Srinivasan, the Managing Director of MEL Systems & Services Ltd, sees the forthcoming FTAs with the EU, ASEAN, and Latin America as a way of getting access to more markets. "The ongoing FTAs will broaden the market for us. The government is investing in semiconductor parks, logistics modernisations and electronics clusters.

Overall, the industry will be benefited from the government," he added. These agreements, along with the sector-oriented policies and skilling programs, are addressing the issues that have been there for a long time, e.g. dependence on imported rare earth minerals and high logistics costs, in comparison with competitors like China, Vietnam, and Mexico.

Also Read: Centre Clears ₹7,172 Cr for 17 Projects Under ECMS

Gurmeet Singh, Executive Director of the Electronics and Computer Software Export Promotion Council (ESC), referred to it as a "turning point" for the industry, with the incentives effectively "attracting attention to manufacturing" and encouraging value creation. The pace was further speeded up by the recent greenlighting of 17 projects under the Electronics Component Manufacturing Scheme (ECMS), which will result in investments worth Rs 7,172 crore.

The projects, which will be implemented in the nine states, are predicted to create a workforce of more than 11,800 people and commit themselves to vital areas such as camera modules and printed circuit boards (PCBs), thereby enabling MSMEs and local capabilities. Union Minister Ashwini Vaishnaw, while acknowledging their contribution to the establishment of robust supply chains, saw India as the next big global player in electronics amidst the changing geopolitical ​‍​‌‍​‍‌​‍​‌‍​‍‌scenario.