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New Delhi, July 5, 2024 — India is making significant strides to establish itself as a global leader in electronics and semiconductor products. A task force constituted by the Ministry of Electronics and Information Technology (MeitY) has proposed a substantial investment of Rs 44,000 crore to bolster India’s capabilities in this sector from 2024 to 2030.
Key Recommendations and Allocations
The task force, led by Ajay K. Sood, the Principal Scientific Advisor to the Government, has recommended:
- Rs 15,000 crore for electronic products (systems)
- Rs 11,000 crore for semiconductor products
- Rs 18,000 crore for initiatives such as skill development, infrastructure, logistics, and technology acquisition
Focus on Indian Companies
The proposal emphasizes benefiting Indian companies, with stringent criteria to ensure 51% shareholding by Indians, headquarters in India, and all global profits and benefits accruing to the Indian parent company.
Extension of PLI Scheme
The task force also advocates extending the production-linked incentive (PLI) scheme to 2030, enhancing taxation policies for research and development, and promoting Indian products globally through subsidies and brand promotion.
Industry Participation
Formed in January, the task force includes industry leaders such as HCL founder and EPIC Foundation chairman Ajay Chaudhary and Dixon Technologies MD Sunil Vachani. Ajay Chaudhary stressed the urgency of starting now to reduce India’s electronics import bill and simplify business operations for global firms designing products in India.
Strategic Identifications
The task force has identified 30 essential electronic products and 40 types of chips required for India’s needs. Strategies to manage and leverage standard essential patents (SEPs) are also proposed to protect domestic companies.
Market Potential
The report projects the potential for India’s electronics market to grow to $3 trillion by 2047, with an ambitious export target of $1 trillion. These initiatives await government approval but promise to match the scale of the PLI scheme for mobile devices and electronics.
With these strategic recommendations, India is poised to become a global powerhouse in electronics and semiconductor products, driving significant economic growth and technological advancement.