India Targets Global Lead in Electronic Component Manufacturing Hub

• ICEA and MeitY urge states to boost India’s electronic component manufacturing hub status.
• Government offers hybrid scheme with Capex support and turnover-linked incentives for components.
• India’s cost advantage and PLI scheme attract global firms like Foxconn, Pegatron.

The India Cellular and Electronics Association (ICEA), in collaboration with the Ministry of Electronics and Information Technology (MeitY), has called on Indian states to unite in leveraging central government schemes to transform India into a global hub for electronic component manufacturing. This ambitious initiative, highlighted during an industry event in Andhra Pradesh, aims to bolster India’s electronics manufacturing ecosystem and enhance domestic value addition.

Sushil Pal stated that the government plans to help domestic electronics manufacturing grow by providing both financial assistance for production and rewards tied to the company’s turnover from component creation. “This is a critical moment for India to strengthen its supply chain and reduce reliance on imports,” Pal stated, urging states to align their policies with the Centre’s vision.

ICEA Chairman Pankaj Mohindroo echoed this sentiment, stressing the need for industry resolve to achieve high domestic value addition. “Now is the time to build a robust supply chain for electronics manufacturing in India,” Mohindroo said, noting that states like Tamil Nadu, Assam, Uttar Pradesh, and Andhra Pradesh are already developing their own policies to encourage component manufacturing.

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The recent rise of India as a top place for manufacturing is confirmed by its new title as the world’s cheapest manufacturing spot, having surpassed China and Vietnam. Thanks to the cost advantage and schemes like PLI from the government, big companies such as Foxconn and Pegatron decided to invest in smartphone manufacturing in India. If India’s policies are directed correctly, the ICEA predicts its laptop and tablet production might achieve figures of $100 billion by 2025.

The push for component manufacturing comes at a pivotal time as global supply chains diversify, positioning India as a key player. NITI Aayog launched the National Manufacturing Mission to make use of this opportunity by promoting employment, upgrading facilities, and standing out in the worldwide market. Yet, some challenges remain, because India needs a qualified workforce and more funding for R&D to change from a low-cost manufacturer to a country focused on technology.

As the country follows the Centre’s plan, the effort is predicted to encourage exports, make India less dependent on imports, and help place it at the head of the global electronics supply chain. India’s growing economy has earned worldwide interest, which will help India make itself known as the “world’s factory.”