Staff Report

India registered a growth of 34 per cent in export of electronics goods and components during 2019-20 over the year 2018-19. In value terms, export of electronics goods and components during 2019-20 is estimated to be US$11,283 million up from US$ 8,432 million estimated in 2018-19.

The breakup of India’s electronics exports is as below:

Telecom equipment 4800

Electronic instruments, medical equipment, office equipment 3059

Electronic components 2565

Consumer electronics 513

IT hardware 346

The Government attached high priority to electronics hardware manufacturing and it is one of the important pillars of both “Make in India” and “Digital India” programs of Government of India.

In 2015 the Government launched Phased Manufacturing Program (PMP) to support mobile phone manufacturing in India. PMP helped to increase the share of locally procured components in the manufacturing of mobile phones leading to the setting up of a “robust indigenous mobile manufacturing ecosystem in India. India has emerged as the second largest manufacturer of mobile phones in the world in 2019. Over 200 units are manufacturing cellular mobile phones and parts / components thereof in the country, up from only 2 units in 2014. The domestic demand is almost completely being met out of domestic production.

Prime Minister Narendra Modi’s vision of Atmanirbhar Bharat ( self-reliant India) has planted the seeds for a new course of long-term development, and serves as the pivot on which India can emerge as a hub for manufacturing and investments. Value of electronics produced in India has reached USD 70 Billion estimated in 2019-20 from USD 29 Billion in 2014-15.

Recently, the Government has launched 3 schemes to support the electronics industry of India namely:

• Production Linked Incentive Scheme (PLI) : The scheme is proposed to offer a production linked incentive of 4% to 6% to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units.

• Scheme for Promotion of Manufacturing of Electronics Components and Semiconductors (SPECS): The scheme will provide financial incentive of 25% on capital expenditure for the identified list of electronic goods that comprise downstream value chain of electronic products, i.e., electronic components, semiconductor/ display fabrication units, ATMP units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods, all of which involve high value added manufacturing.

• Electronics Manufacturing Clusters (EMC) 2.0: EMC 2.0 scheme envisages to create quality infrastructure (with minimum area of 200 acres) along with industry specific facilities like Common Facility Centers, Ready Built Factory Sheds / Plug and Play facilities etc.

The three schemes together will enable large scale electronics manufacturing, the domestic supply chain of components and state-of-the-art infrastructure and common facilities for large anchor units and their supply chain partners. These schemes are expected to contribute significantly to achieving a $1 trillion digital economy and a $5 trillion GDP by 2025.

Export of electronics goods from India to Middle East Region during 2019-20 is estimated to be US$ 3,076 million which is 27.26% of India’s total electronics export.

Export of electronics goods to UAE has increased from US$ 1442 million estimated in 2018-19 to US$ 2440 million in 2019-20 registering a growth of 69%. Telecom equipment mainly mobile phones is the largest item of export to UAE during 2018-19 and 2019-20 says Kamal Vachani representing Electronics and Computer Software Export Promotion Council (ESC) as a Hon. Regional Director in the Middle East.

Electronics and Computer Software Export Promotion Council is continuing its efforts to enhance India’s electronics and IT export globally during the current difficult time of Corona pandemic.

ESC has been continuously connecting its members with various electronics and IT companies across the globe through webinars and virtual B2B meets. A number of global Business Match Making programs are being planned by ESC during 2020-21 both virtual as well as physical. In addition to the 21st edition of INDIASOFT, ESC will be organising AIOT Global Expo in the 1st quarter of the next calendar year.