“India’s Electronics Manufacturing Sector Set to Soar to USD 115 Billion by 2024, Fueled by Mobile Phone Dominance”
In a groundbreaking revelation by the India Cellular and Electronics Association (ICEA), the electronics manufacturing sector in India is gearing up for an exceptional upswing, set to reach a staggering worth of USD 115 billion by 2024. Spearheaded by the exponential growth in mobile phone production, this projection showcases an impressive 15% surge from the present stature, indicating a remarkable trajectory of the nation’s tech industry.
In a groundbreaking revelation by the India Cellular and Electronics Association (ICEA), the electronics manufacturing sector in India is gearing up for an exceptional upswing, set to reach a staggering worth of USD 115 billion by 2024. Spearheaded by the exponential growth in mobile phone production, this projection showcases an impressive 15% surge from the present stature, indicating a remarkable trajectory of the nation’s tech industry.
Pankaj Mohindroo, Chairman of ICEA, emphasized the pivotal role played by mobile phones, estimating their production to eclipse the USD 50 billion mark by March 2024, marking a substantial leap from the previous fiscal year’s USD 42 billion. This surge is attributed to the comprehensive development of products and an increased focus on higher levels of value addition within the sector.
A notable milestone in this progression is the advent of Google’s Pixel smartphone production, slated to commence in India from the first quarter of 2024. This move solidifies the manufacturing footprint of all major global players within the country, highlighting India’s strategic importance in the global tech landscape.
Government data reflects a phenomenal over four-fold surge in domestic electronics manufacturing over the last decade, soaring from ₹1,80,454 crore (USD 29.8 billion) in FY14 to a staggering ₹8.22 lakh crore (USD 102 billion). Mohindroo further accentuated that the total production of electronic goods in the upcoming financial year is estimated to touch the USD 115 billion mark, largely propelled by the exceptional contribution of mobile phones.
An essential facet of this surge is the projection of mobile phone exports, slated to reach USD 15 billion in FY24, representing a substantial 35% growth from the preceding fiscal year. During the April-November period of the current fiscal, mobile phone exports have already surpassed USD 9 billion, showcasing a robust increase from USD 6.2 billion during the same period last year.
Despite this remarkable growth, debates have emerged regarding the level of value addition in the indigenous electronics manufacturing domain. Former RBI Chairman Raghuram Rajan’s query on this front drew criticism from Union ministers Ashwini Vaishnaw and Rajeev Chandrasekhar. Vaishnaw countered the critique by highlighting the industry’s strides in manufacturing complex technology products, asserting an increase in local value addition of up to 60%.
Emphasizing a move towards self-reliance, Mohindroo highlighted the mobile phone industry’s achievements in attaining near self-sufficiency in Printed Circuit Boards Assembly (PCBAs), chargers, battery packs, and cables, showcasing a concerted effort toward deep manufacturing and increased localization.
While the pursuit of building a semiconductor ecosystem faced a setback with the Vedanta-Foxconn joint venture dissolution for a proposed semiconductor plant, both entities are independently working to establish separate semiconductor facilities. Tata Electronics, Foxconn, and the HCL Group have submitted applications to set up chip plants, recognizing the significance of chips as a critical component for modern electronic devices.
Anku Jain, Managing Director of fabless chipset company MediaTek India, expressed optimism about India’s evolving ecosystem, highlighting plans to explore locally-made chipsets once semiconductor plants materialize. Jain projected a promising future, anticipating a more extensive contribution from India in various components essential for electronic devices.
The establishment of a USD 2.75 billion assembly and test plant for memory chip modules by global memory chip maker Micron, with substantial fiscal support from the government, marks a significant milestone in India’s semiconductor journey, indicating a pivotal step towards fostering a robust semiconductor ecosystem within the country.
With a strategic focus on indigenous manufacturing, augmented value addition, and a burgeoning semiconductor ecosystem, India’s electronics manufacturing sector stands poised to make unprecedented strides on the global stage, transforming the nation into a significant contributor to the world’s tech landscape.
Sources By Agencies
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