India is steadily strengthening its electronics manufacturing capabilities with a methodical approach, aiming for self-reliance and a significant role in the global supply chain. Union Minister for Electronics and IT, Ashwini Vaishnaw, has emphasized the country's commitment to developing its own capabilities and reducing dependence on other nations through strategic collaborations and domestic production incentives.
Focus on Value Addition and Self-Reliance
India is striving to achieve 38% value addition in electronics manufacturing within the next five years, a target that mirrors China's current level. This ambition is being pursued through a combination of strategic partnerships with countries like Taiwan, the US, and South Korea, and by fostering domestic production. The goal is to create a resilient ecosystem that can withstand geopolitical challenges and ensure a stable supply of essential components.
Vaishnaw has stressed the importance of self-reliance in every domain to protect India from global disruptions, stating, "We have to get into every machine, every component. We must go into every part of it and start manufacturing them". This vision includes developing indigenous skills and supply chains to reduce reliance on foreign expertise.
Semiconductor Mission and Component Manufacturing
A key component of India's strategy is the India Semiconductor Mission (ISM), backed by a substantial financial commitment. The mission aims to establish India as a global semiconductor hub through innovation, infrastructure development, and skill enhancement. The government has launched comprehensive training programs to equip engineers with the necessary expertise in advanced semiconductor and electronics manufacturing.
The government is also providing support for auxiliary industries, including those producing gases, chemicals, equipment, and raw materials, to build a complete semiconductor ecosystem. The Electronics Component Manufacturing Scheme complements the ISM by supporting the production of passive components, ensuring a comprehensive approach to electronics manufacturing.
Progress and Investments
India's electronics manufacturing sector is experiencing significant growth. Electronics manufacturing has grown fivefold in the last six years, crossing Rs 11 lakh crore. Exports have also seen a sixfold increase over the last decade, exceeding Rs 3.25 lakh crore. The sector now employs over 25 lakh people and is poised for further expansion.
Several projects are underway, including the Tata Electronics chip assembly plant in Assam, which will serve telecom manufacturers globally. Micron is establishing a unit in Gujarat to supply memory chips, while CG is setting up a plant, also in Gujarat, for power electronics. These investments demonstrate the growing confidence in India's manufacturing capabilities.
Challenges and Future Outlook
While India has made significant strides, challenges remain. These include infrastructure limitations and the need for a robust supply chain. The government is actively addressing these issues by investing in infrastructure development and streamlining regulatory processes.
Looking ahead, India aims to create an end-to-end, localized semiconductor supply chain to reduce reliance on imports and enhance self-reliance. The increasing demand for advanced chips in sectors like 5G/6G, AI, electric vehicles, and IoT will further drive the growth of India's semiconductor industry. By strategically aligning resources and partnerships, India is positioning itself as a key player in the global electronics landscape.
