According to Rajeev Chandrasekhar, minister of state for electronics and information technology, Prime Minister Narendra Modi’s vision for 2023 is for mobile phone exports to rank among India’s top ten export categories.
According to news agency PTI, the minister stated that the government will take all necessary steps to strengthen the country’s electronics manufacturing ecosystem and will consider expanding the manufacturing base beyond mobile phone manufacturing by 2023.
Apple and Samsung dominated mobile phone exports from India, which totaled around Rs 45,000 crore.
According to the minister, the government is working to expand the electronic manufacturing ecosystem beyond mobile phones in order to increase global share in the hearables and wearables segment, IT hardware, electronic components, and so on.
We will broaden and deepen the ecosystem to complement our mobile phone successes. In the semiconductor industry, the deepening strategy has long existed. There is no doubt that we want to do more in our component industry. While we are expanding in the mobile phone space, we also want to do well in the IT server and hardware space, as well as the wearable and hearable space. All of these are areas that are rapidly expanding globally, according to the minister.
Indian brands such as Imagine Marketing (BoAt) and Fire-Boltt are now among the world’s top selling wearable brands.
Data centres and incturn servers are in high demand as data volumes increase due to 5G and high-speed broadband.
According to market research firm Research And Markets, the Indian server market will be worth USU 1.6 billion in 2022 and will grow at a compound annual growth rate of 7.19 percent.
We would like to expand our market share in IT hardware and servers. We are currently a very small player in that market. We want to increase our component market share as well as our global market share in wearables and hearables. The Prime Minister’s goal and objective is to be a significant trusted partner to global enterprises and consumers in all of these areas. If that necessitates additional PLI or policy, Chandrasekhar stated.
The government selected 14 companies for manufacturing IT hardwares under the PLI scheme for IT Hardware, including Dell, Rising Stars, Flextronics Technologies, Lava International, Dixon Technologies, and others.
The scheme includes a provision for a Rs 7,325 crore incentive tied to incremental investment and sales of locally manufactured goods.
MAIT, the trade association for IT hardware manufacturers, has asked the government to decouple incentives from investments because several players already have excess production capacity, and to increase the total incentive under the scheme to Rs 25, 000 crore.
