Prime Minister Narendra Modi’s vision for 2023 is to have mobile phone exports, with the segment being found in the top 10 export category from India, said Minister of State for Electronics and IT Rajeev Chandrasekhar. Speaking to PTI, the minister said the government will take all measures needed to boost the electronics manufacturing ecosystem in the country and will consider expanding the manufacturing base beyond cell phone manufacturing in 2023.
“Prime Minister Narendramodi Ji’s vision for 2023 is Rs. 1 lakh crore worth of mobile phone exports, with mobile phones being in the top 10 exported devices category,” Chandrasekhar said.
Mobile phone exports from India totaled around Rs. 45,000 crore which was dominated by Apple and Samsung.
The minister said the government is working to expand the electronic manufacturing ecosystem beyond mobile phones to increase the global share in the hearing aids and wearables segment, IT hardware, electronic components, etc.
According to a study by electronics component manufacturer ELCINA, the demand for components in 2020-21 was US$32 billion (approx. 82,000 crore) that were manufactured locally, and that too with much of the raw materials imported.
While the minister did not elaborate on the specific measures, official sources said the government is planning to develop a production-linked incentive scheme for hearing aids, wearables, as well as an enhanced PLI system for IT hardware and electronic components to empower its local population Production.
“We will complement our mobile successes by expanding and deepening the ecosystem. The deepening strategy was present in the semiconductor area. It is very clear that we want to do more in our components industry. In expansion, as we grow into mobile phone space, we want to do well in IT server and hardware space, wearable space and audible space. These are all areas that are growing rapidly around the world,” the minister said.
Indian brands like Imagine Marketing (boat) and firebolt are now among the world’s best-selling brands in the wearables and hearables category.
With data growth driven by 5G and high-speed broadband, so does the demand for data centers and servers.
According to market research company Research And Markets, the Indian server market was projected to reach US$1.6 billion (approx.
“We want to increase our market share in IT hardware and servers. Today we are a very small player in this area. We want to increase our market share in components and global market share in wearables and hearables. That is the Prime Minister’s goal and the goal is that we want to be a significant trusted partner for global businesses and consumers in all of these areas. If this requires additional PLI or guidance, we will do so,” said Chandrasekhar.
Under the PLI program for IT hardware, the government had selected 14 companies to manufacture IT hardware, including Dell, Rising Stars, Flextronics Technologies, Lava International, Dixon Technologies etc.
The scheme provides an incentive of up to Rs 7,325 crore linked to additional investment and sales of locally made goods.
The association of IT hardware manufacturers MAIT has asked the government to separate the stimulus from investments as several players already have excess production capacity and increase the overall stimulus under the scheme to Rs. 25,000 crores.
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