India's Electronics Exports Boom Driven by PLI Initiative, Says IESA Leader
Click to start listening
Synopsis
India's electronic exports are surging, fueled by the Production-Linked Incentive scheme, as per Ashok Chandal of the IESA. This initiative has positioned India as a prime location for global investors, enhancing local manufacturing and competitiveness against major hubs like China and Vietnam.
Key Takeaways
- India's electronics exports are rising sharply.
- The PLI scheme is key to this growth.
- Apple's presence boosts India's manufacturing profile.
- Domestic demand is a significant growth driver.
- Future potential exists in various electronics sectors.
New Delhi, March 26 (NationPress) India’s electronic exports have experienced a remarkable increase, primarily attributed to the government’s Production-Linked Incentive (PLI) scheme and electronic manufacturing clusters, stated Ashok Chandal, President of the India Electronics and Semiconductor Association (IESA), in an interview with IANS on Wednesday.
He mentioned that these measures have not only enhanced local production but have also positioned India as an appealing hub for global investors.
“Government policies have addressed crucial industry gaps, allowing India to contend with well-established manufacturing centers like China and Vietnam,” he remarked, noting that the escalating domestic demand for electronics has further propelled the drive for local manufacturing.
Initiatives such as the PLI scheme and ‘Make in India’ have been pivotal in rendering Indian electronics manufacturing competitively priced.
“These incentives have mitigated cost imbalances that previously hindered India’s electronics manufacturing,” Chandal elaborated.
He pointed out that the Indian government recently commenced the disbursement of reimbursements under the PLI scheme across multiple sectors, including electronics, semiconductors, automotive, and pharmaceuticals.
“This confirms the government’s dedication to its commitments, which will stimulate further investment and manufacturing growth,” he added.
One of the most significant players in this transformation is Apple, which has dramatically increased its manufacturing activities in India.
Chandal emphasized that Apple’s contract manufacturers, such as Foxconn and Pegatron—now partially integrated with the Tata Group—have established India’s reputation in high-tech manufacturing.
“This has provided India with substantial global visibility. Manufacturing for Apple is a reflection of India’s ability to produce high-quality electronics,” he asserted.
The influence of Apple’s expansion is clear, with the tech giant now constituting over 50 percent of India’s total electronics exports.
While smartphones have been the main drivers behind India’s electronic exports, other sectors are also gaining momentum.
Chandal believes that automotive electronics, electric vehicles (EVs), medical devices, industrial IoT, and consumer electronics hold significant export growth potential.
“India’s electronics market is projected to reach $500 billion by 2030, creating numerous export opportunities. However, enhancing domestic value addition remains a top priority,” he stated.
To ensure ongoing growth, Chandal stressed the necessity of strengthening India’s supply chain resilience and boosting R&D capabilities.
