{"id":46291,"date":"2025-04-21T03:25:00","date_gmt":"2025-04-20T21:55:00","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=46291"},"modified":"2025-05-17T20:50:10","modified_gmt":"2025-05-17T15:20:10","slug":"indias-electronics-manufacturing","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/indias-electronics-manufacturing\/","title":{"rendered":"India&#8217;s Electronics Manufacturing: Boosting Local Value Addition &#038; Cutting Imports"},"content":{"rendered":"<h2>What\u2019s in Today\u2019s Article?<\/h2>\n<ul>\n<li>Electronics Manufacturing India Latest News<\/li>\n<li>India\u2019s Progress in Electronics Manufacturing Value Addition<\/li>\n<li>Performance and Future of PLI Schemes<\/li>\n<li>Electronics Manufacturing India FAQs<\/li>\n<\/ul>\n<h2>Electronics Manufacturing India Latest News<\/h2>\n<ul>\n<li>Global smartphone giants like Apple and Samsung have set up production bases in India due to a large talent pool, government subsidies, and the need to diversify from China.\u00a0<\/li>\n<li>While India has successfully localized smartphone assembly, the government is now focusing on increasing domestic value addition.\u00a0<\/li>\n<li>To achieve this, it has launched targeted subsidy schemes, including the \u20b976,000 crore <strong>India Semiconductor Mission<\/strong> and a \u20b923,000 crore <strong>scheme for passive electronic components<\/strong>, alongside existing <strong>PLI schemes<\/strong>.<\/li>\n<li>The goal is to reduce import dependence\u2014especially on China\u2014boost local manufacturing across all layers of electronics, and create high-quality jobs.\u00a0<\/li>\n<li>Currently, India\u2019s local value addition is 15\u201320%, with plans to double it in the coming years (China stands at 38%). However, India&#8217;s trade deficit with China hit a record $100 billion in 2024\u201325, highlighting the urgency of these efforts.<\/li>\n<\/ul>\n<h2>India\u2019s Progress in Electronics Manufacturing Value Addition<\/h2>\n<ul>\n<li>India is rapidly becoming a global manufacturing hub for electronics.\u00a0<\/li>\n<\/ul>\n<h3>Goal to Increase Domestic Value Addition<\/h3>\n<ul>\n<li>The government\u2019s new components policy aims to raise local value addition from 15-16% to 40-50%, further boosting the sector&#8217;s growth and reducing import dependence.<\/li>\n<\/ul>\n<h3>Mobile Phone Exports Growth<\/h3>\n<ul>\n<li>Mobile phone exports from India have surged 77 times over the past decade, showcasing the country&#8217;s increasing role in global electronics manufacturing.<\/li>\n<\/ul>\n<h3>Growth in Electronics Exports<\/h3>\n<ul>\n<li>India\u2019s electronics exports have been growing at a robust CAGR of 26% from FY16 to FY25, signaling a growing presence in the global market.<\/li>\n<\/ul>\n<h3>Domestic Production of Key Components<\/h3>\n<ul>\n<li>India has reduced its reliance on mobile PCBAs, with imports dropping from Rs 300 billion in FY18 to near zero by FY24.<\/li>\n<\/ul>\n<h3>India\u2019s Position in Mobile Phone Manufacturing<\/h3>\n<ul>\n<li>India is now the world\u2019s second-largest mobile phone producer, with nearly 99% of the phones sold domestically being manufactured locally.<\/li>\n<\/ul>\n<h2>Electronics Components Manufacturing Scheme<\/h2>\n<ul>\n<li>Recently, the IT Ministry has launched a \u20b922,919 crore incentive scheme for electronics components aimed at deepening India\u2019s electronics manufacturing capabilities.\u00a0<\/li>\n<li>This builds on the earlier PLI schemes which primarily targeted smartphone and computer assembly.<\/li>\n<\/ul>\n<h3>Focus on Component-Level Manufacturing<\/h3>\n<ul>\n<li>The six-year scheme targets the domestic production of key components such as display modules, camera sub-assemblies, PCBs, lithium cell enclosures, resistors, capacitors, and ferrites.\u00a0<\/li>\n<li>These are essential for smartphones, laptops, and household appliances.<\/li>\n<\/ul>\n<h3>Reducing Dependence on China<\/h3>\n<ul>\n<li>As local assembly of devices has grown, India\u2019s reliance on China for internal components has increased.\u00a0<\/li>\n<li>The new scheme aims to reduce this dependence by fostering domestic component manufacturing.<\/li>\n<\/ul>\n<h3>Job Creation and Investment Goals<\/h3>\n<ul>\n<li>The scheme is expected to:\n<ul>\n<li>Create at least 91,600 direct jobs<\/li>\n<li>Generate \u20b94.56 lakh crore worth of production<\/li>\n<li>Attract \u20b959,350 crore in incremental investment<\/li>\n<\/ul>\n<\/li>\n<li>Annual subsidies will be linked to the number of jobs created by participating companies.<\/li>\n<\/ul>\n<h2>Performance and Future of PLI Schemes<\/h2>\n<ul>\n<li><strong>Success of the Smartphone PLI Scheme<\/strong>\n<ul>\n<li>The smartphone PLI scheme has been highly successful among the 14 programs launched in 2020.\u00a0<\/li>\n<li>Key achievements as of February 2025 include:\n<ul>\n<li>Cumulative investment: \u20b910,905 crore<\/li>\n<li>Cumulative production: \u20b97,15,823 crore<\/li>\n<li>Cumulative exports: \u20b93,90,387 crore<\/li>\n<li>Direct jobs created: 1,39,670<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>Performance of the IT Hardware PLI Scheme<\/strong>\n<ul>\n<li>The IT hardware PLI scheme, initially slow, gained momentum in 2023 with an increased allocation of \u20b917,000 crore.\u00a0<\/li>\n<li>Key figures for laptops and computers under the scheme:\n<ul>\n<li>Cumulative production: \u20b910,365 crore<\/li>\n<li>Cumulative investment: \u20b9522 crore<\/li>\n<li>Direct jobs created: 5,132<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>Government Support and Distribution of Funds<\/strong>\n<ul>\n<li>The government has disbursed nearly $1 billion (\u20b98,700 crore) between 2022-2025 under the smartphone PLI scheme, with major contract manufacturers like Foxconn, Tata Electronics, and Pegatron receiving over 75% of the funds.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Future Directions for PLI Schemes<\/strong>\n<ul>\n<li>With the current schemes nearing their sunset in 1-3 years, the government is considering extending incentives to include metrics beyond incremental sales, such as domestic value addition and incremental exports, to further strengthen the sector.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Electronics Manufacturing India FAQs<\/h2>\n<p><strong>Q1.<\/strong> What is India\u2019s current value addition in electronics manufacturing?<\/p>\n<p><strong>Ans.<\/strong> India\u2019s value addition is around 15\u201320%, with efforts underway to double it in the coming years through new policies.<\/p>\n<p><strong>Q2.<\/strong> Why is India reducing electronics import dependence on China?<\/p>\n<p><strong>Ans.<\/strong> India\u2019s electronics trade deficit with China hit $100 billion; cutting imports ensures economic security and job creation.<\/p>\n<p><strong>Q3.<\/strong> What does the new \u20b923,000 crore scheme focus on?<\/p>\n<p><strong>Ans.<\/strong> It targets domestic production of electronic components like PCBs, resistors, display modules, and lithium cell enclosures.<\/p>\n<p><strong>Q4.<\/strong> How successful is the smartphone PLI scheme?<\/p>\n<p><strong>Ans.<\/strong> With \u20b97.15 lakh crore in production and over 1.3 lakh jobs, the smartphone PLI scheme has exceeded expectations.<\/p>\n<p><strong>Q5.<\/strong> What\u2019s next for India\u2019s PLI schemes?<\/p>\n<p><strong>Ans.<\/strong> The government plans to shift incentives towards domestic value addition and exports to ensure long-term electronics growth.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/india-electronics-manufacturing-local-value-addition-9954561\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a> | <a href=\"https:\/\/economictimes.indiatimes.com\/industry\/cons-products\/electronics\/indias-electronics-manufacturing-value-addition-jumps-to-70-set-to-reach-90-by-fy27\/articleshow\/120189337.cms?from=mdr\" target=\"_blank\" rel=\"nofollow noopener\">ET<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India boosts electronics value addition with \u20b976,000 cr semiconductor mission, new PLI schemes, and focus on reducing China import dependence.<\/p>\n","protected":false},"author":5,"featured_media":46292,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-46291","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/46291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=46291"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/46291\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/46292"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=46291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=46291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=46291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}