According to Rajeev Chandrasekhar, Minister of State for Electronics and IT, India’s export of electronics could reach Rs. 1.28 lakh crore in the upcoming fiscal year. In an interview with a news agency, he stated that the government would strengthen the manufacturing ecosystem by introducing a new production-linked incentive scheme for companies that produce IT devices, hearing aids, and other wearables.
To promote the production of electronic components and critical modules other than semiconductors, the industry body for manufacturers of electronic components, ELCINA, has asked for $10 billion (about Rs 80,000 crore) over an eight-year period.
The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) has been requested to be extended for an additional four years with an increased investment of Rs 16,000 crore in the Union Budget for 2023–2024.
With a targeted output of USD 24 billion (about Rs 1.95 lakh crore), ELCINA believes that the enhanced PLI will draw investments totalling around Rs 64,000 crore. Semiconductors are the only component that is not included in this production.
The industry body has also asked for the reintroduction of income tax deductions for investments made in R&D.
Additionally, a PLI scheme with an emphasis on domestic electronics manufacturing services companies has been requested.
In order to promote domestic manufacturing, the India Electronics and Semiconductor Association (IESA) has asked the government to change the PLI scheme into a design-led manufacturing programme and impose a 10% import duty on any imported electronics equipment and assembled printed circuit boards (PCB).