Magazine : 
India Invests Rs 44,000 Crore to Emerge as Electronics Powerhouse
A task force established by the Ministry of Electronics and Information Technology (MeitY) to enhance India's capabilities in electronic and semiconductor products is expected to propose an allocation of Rs 44,000 crore for the period from 2024 to 2030, according to reports. The initiative aims to support domestic companies in developing products and creating global brands.
According to a report, the task force, led by Ajay K Sood, the principal scientific advisor to the government, has proposed substantial incentives. These include Rs 15,000 crore for electronic products (systems), Rs 11,000 crore for semiconductor products, and Rs 18,000 crore for initiatives such as talent development, infrastructure, logistics, and technology acquisition.
The recommendations, awaiting government approval, could rival the scale of the production-linked incentive (PLI) scheme for mobile devices and electronics. The task force, established in January, includes prominent industry figures like Ajai Chowdhry, founder of HCL and chairman of EPIC Foundation, and Sunil Vachani, MD of Dixon Technologies.
The report states that the task force's proposal is exclusively aimed at benefiting Indian companies. It sets strict criteria, defining an Indian company as one where Indians control 51 percent of the shareholding, the company is headquartered in India, and all global profits and benefits accrue to the Indian parent company.
Ajai Chowdhry stresses the initiative's long-term vision, stressing the need to start now to reduce India's electronics import bill. The task force also advocates for extending the PLI scheme until 2030, enhancing taxation policies for R&D, and promoting Indian products globally through subsidies and brand promotion.
Ajai Chowdhry emphasizes the initiative's long-term vision, highlighting the urgency of starting now to reduce India's electronics import bill. The task force also recommends extending the PLI scheme until 2030, improving taxation policies for R&D, and promoting Indian products globally through subsidies and brand promotion. The report identifies 30 essential electronic products and 40 types of chips crucial for India's needs, projecting the electronics market could grow to $3 trillion by 2047, with exports targeting $1 trillion.
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