ICEA seeks meeting with FM Nirmala Sitharaman to discuss strategy for electronics manufacturing

As the country aims to reach $500 billion electronics manufacturing by FY30, the India Cellular and Electronics Association (ICEA) on Tuesday said it would seek a meeting with Finance Minister Nirmala Sitharaman and other top government functionaries to arrive at a strategy for the industry.

"We are keen to have a presentation with the Finance Minister and PMO on the elements that are essential for the industry to achieve the outlined vision of $ 500 billion by 2030, Pankaj Mohindroo, Chairman of ICEA, told reporters.

The electronic industry in India is currently at $ 115 billion-level. The electronics industry needs to grow over 20 per cent compound annual growth rate (CAGR) to achieve the target of $500 billion by FY30, he said.  

Among key aspects the industry is hoping to discuss with the key government representatives are to adopt a strategy to enhance India's capabilities in electronics manufacturing and boosting New Delhi's participation in Global Value Chains (GVCs), he said.

GVCs are key to modern manufacturing, involving global collaboration across activities such as design, production, marketing, and distribution.

The success of the GVC model is absolutely critical, he said, adding that the industry is hoping to brainstorm on how to fundamentally increase the GVC participation. ICEA hopes to discuss tariff rationalisation, ease of business, and enabling reforms.

Electronics production nearly doubled from $48 billion in FY17 to $101 billion in FY23, driven primarily by mobile phones, which now constitute 43 per cent of total electronics production.

In the financial year 2023, India’s electronics sector recorded a significant value of exports, contributing a considerable share of 5.32 per cent to India’s total merchandise exports.

In his inaugural session of ‘Semicon India 2024’ event last week, Prime Minister Narendra Modi gave a clarion call to the industry to grow the country's electronics sector to USD 500 billion and create 6 million jobs by the end of this decade.