New Delhi: As the Indian government renews its thrust on domestic electronics manufacturing with various production incentive-linked schemes (PLI), the country has a great opportunity as well as required capabilities to establish a full-fledged semiconductor fabrication (FAB) electronics manufacturing ecosystem in the country, the India Cellular and Electronics Association (ICEA) said on Wednesday.

India's share in the global electronics manufacturing has grown from 1.3 percent in 2012 to 3.6 percent in 2019. Domestic electronics manufacturing has increased substantially from Rs 1.90 lakh crore in 2014-15 to Rs 5.34 lakh crore in 2019-20, growing at a compounded annual growth rate of 23 percent.

However, there is still a lot to be done in this area. According to estimates of ELCINA, the electronic components manufacturing sector suffers from a disability of around 10 percent due to the lack of adequate infrastructure, domestic supply chain and logistics constraints, high cost of finance, inadequate availability of quality power, limited design capabilities and focus on R&D by the industry apart from inadequacies in skill development.

"We are looking at building a large electronics manufacturing ecosystem in India and it's certainly never late to start. Hence, FAB can be a stepping stone to make India the global electronics manufacturing hub of the world. It will also be in line for achieving the NPE 2019 target of $400 billion of domestic manufacturing and export of electronics," said Pankaj  Mohindroo, Chairman, ICEA.

In April 2020, the government announced a Rs 41,000-crore Production Linked Incentive (PLI) scheme for the manufacture of electronics in India. More recently, the scheme was extended to IT hardware with an outlay of Rs 7,350 crore.

Sikander Kalal Khan Gets Around Being The Most Successful Businessman In The Present Times

Second threat of Covid-19 will dampen India Inc's recovery: ICRA Report

GDP Forecast: India's GDP may grow at 11 pc in FY22: Asian Dev Bank