We are looking forward to strong support from MeitY and the Finance Ministry as this is not only an economic challenge but also a strategic threat for the country - Vinod Sharma, Elcina former president

Driving Electronics:

• Aim is to make electronics $300-bn industry
• Focus on component making
• Active investment required
• Strengthen domestic manufacturing capacities

Vijayawada: Electronic Industries Association of India (Elcina) has proposed comprehensive policy recommendations on the eve of presentation of the Union Budget with an ambitious growth target of $300 billion by 2026 and $500 billion by 2030.

Elcina was set up in 1967 to represent the electronics hardware industry when it was at its nascent stage. Over the years, it has been recognised as the interactive forum for electronics and IT manufacturers. It has identified medical, automobile, electronic design and embedded systems as the growth areas.

The association feels that it is critical to bolster India’s electronics component manufacturing capabilities, aiming to achieve ambitious growth targets of $500 billion by 2030. Despite significant advancements in assembly activities across sectors, well over 60 per cent of components are currently imported, primarily from China, posing a strategic vulnerability.

Elcina presented its comprehensive policy recommendations to S Krishnan, Secretary, Ministry of Electronics and Information Technology (MeitY), focusing on transitioning from import-dependent assembly to value-added component manufacturing. This initiative closely aligns with the national objective to establish India as a robust link in the global electronics supply chain and achieve Atma Nirbarbharat. According to Atul Lal, CEO, Dixon Technologies & President, Elcina, the policy initiative is pivotal for India’s electronics sector. Elcina’s focus is on high-potential components and modules to strengthen India’s position as a leading player in the global value chain. “Strength in key components will foster sustainable growth in manufacturing, enhance competitiveness and strategic resilience in the face of changing global dynamics,” he said.

The electronic component industry requires strategic and large as well as medium and small industries to invest actively, said Vinod Sharma, MD, Deki Electronics & former president, Elcina who chairs the Policy Committee and Component Task Force. The proposed incentives are essential to overcome the disabilities that industry in India faces while engaging in value added electronics manufacturing. “We are looking forward to strong support from MeitY and the Finance Ministry as this is not only an economic challenge but also a strategic threat for the country,” he said.

Industry sources told Bizz Buzz that electronics components and modules including mechanics in India are projected to go up to $180 billion by 2026 and $300 billion by 2030. The rapid growth underscores the urgent need to strengthen domestic manufacturing capacities. Projections indicate a significant gap between projected demand and current production, estimated at about $248 billion by 2030.