Electronics and IT minister Ashwini Vaishnaw on Wednesday said the government and the industry are working together on a set of reforms to achieve the $500-billion electronics manufacturing target by 2030.
Vaishnaw’s comments come after Prime Minister Narendra Modi last week announced an ambitious goal of achieving $500-billion electronics manufacturing in the next six years.
“Whatever be the ambition, if the hard work and the right policies can come in, the target can be achieved,” Vaishnaw said in conversation with Apple India managing director Virat Bhatia at an event by Public Affairs Forum of India (PAFI). The reforms will help accelerate the country’s electronics manufacturing, he added.
The minister’s comments assume significance as the India Cellular and Electronics Association (ICEA), which represents major electronics and smartphone players, on Wednesday said it will hold talks with the Prime Minister’s Office (PMO) and the finance ministry later this month on how to achieve the target.
The industry plans to seek tariff rationalisation, ease of doing business, and reforms in its meetings with the government to boost electronics manufacturing in the country.
In FY24, India’s total electronics production stood at $115 billion, of which around $52 billion was mobile phones, according to ICEA estimates.
Electronics production in India will need to grow at an annual growth rate of 20-22% to reach the $500-billion target by 2030, ICEA chairman Pankaj Mohindroo said on Tuesday.
Speaking at the event, Apple’s Bhatia said, “$500 billion in six years just to put in perspective…is equivalent of India’s industrial output today which is 14% of India’s GDP.” “So, it’s a massive target, very ambitious, very audacious and requires almost every single engine to Fire. But if that happens, and if we can dream of getting it done, or come close to that, it would change this nation forever,” he added.
The Centre is also working on a components incentive scheme to increase manufacturing of electronics components and increase domestic value addition.
On a question of simplification and reducing compliance burden on different sectors, Vaishnaw asked the industry to form 7-8 taskforces across sectors and come up with different areas which the government can work on.
From: financialexpress
Financial News
