Tech

Electronics production in India to reach $300 billion by 2026: Report

Electronics production in the country is expected to reach USD 300 billion by 2026, industry body ICEA said in a report.

The National Policy on Electronics (NPE) 2019 had set a target of achieving a turnover of USD 400 billion by 2025.

However, the industry will be unable to achieve the target set by NPE 2019 due to the adverse impact of the COVID-19 pandemic on the sector, the report said, adding that “the COVID-19 pandemic brought with it unforeseen and unprecedented challenges.”

The report said NPE 2019 targets electronics production in 2025–26 at USD 300 billion, which appears to be more realistic considering the disruption caused by COVID-19 in the past 18 months, which has been aggravated by the new variants of the COVID-19 virus, such as Omicron.

While sharing the details of the report, Chairman Pankaj Mohindroo said that the reduced target still aims for a 400 percent increase from the current level, which will require significant and persistent policy initiatives and efforts to create a conducive electronics manufacturing ecosystem.

He said that the government should not change the tax tariff without consultation with the industry.

Mohindroo said that there is a need to encourage domestic champions.
The report estimates demand for electronic products in India may stand at approximately 180 billion USD by 2025–26.

“If India can achieve the manufacturing target of $300 billion for electronics, the domestic market demand may be met in full by such manufacturing.” “This necessitates that USD 120 billion worth of electronic products are exported to the global market,” the report said.

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Kaushal

Kaushal is the Founder & CEO of JeunBlog.com, I love to share my knowledge with people on several topics.

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