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Centre may come out with a larger scheme to promote electronics component manufacturing: IT Secretary

Building on the initial successes India achieved in electronics manufacturing, there is an ambitious plan to increase local value addition from the current 18-20 per cent to 38-40 per cent in the future. The Centre is working on identifying the top five electronic components for which incentives could be offered to attract investments and build a strong electronic component manufacturing base in the country, said S Krishnan, Secretary of the Ministry of Electronics and Information Technology (MeitY).

“There will be a large components promotion scheme by the Centre in order to bring in electronics component manufacturing. The objective is to identify five top items including PCBs (printed circuit boards) and encourage much more of such manufacturing in the country. It is important from a resilient and continued competitiveness perspective to get it done,” he said, while delivering the 10th G Ramachandran Endowment Lecture, organized by the Madras School of Economics and South India Chamber of Commerce and Industry.

For this electronics components manufacturing promotion, incentives could be provided or we can learn from other countries including Europe as not all barriers have to be physical. Krishnan highlighted India’s success in attracting assembly and packaging units for mobile phones, achieving an 18-20 per cent value addition. He suggested doubling this to 38-40 per cent to improve resilience. While China achieves 40-45 per cent value addition by sourcing inputs globally, Krishnan emphasized that India should focus on areas where it can make a difference rather than trying to cover the entire value chain.

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