Priority components and sub-assemblies, including PCBAs, are projected to grow at a strong CAGR of 30 per cent, reaching $139 billion by 2030, according to the Confederation of Indian Industry (CII) report, which suggested key recommendations for developing a plan. to further help the industry.
Last year, demand for components and subassemblies amounted to $45.5 billion to support $102 billion worth of electronics production.
The report identified five priority components/subassemblies of batteries (lithium-ion), camera modules, mechanical components (cases, etc.), displays and PCBs, which are classified as high priority for India.
Together they accounted for 43 percent of component demand in 2022 and are expected to grow to $51.6 billion by 2030, according to the report.
These components either have nominal production in India or are highly dependent on imports.
"Similarly, PCBA is a high potential category for India as most of the demand is met by imports. This segment is expected to grow by 30 per cent, leading to demand creation of 87 .46 billion dollars by 2030," the report states.
The report recommended developing a plan aimed at providing fiscal support for selected components and subassemblies in the range of 6 to 8 percent.
"Fiscal support will be extended for a period of 6 to 8 years to ensure adequate time to expand and improve value addition," he added.
Additionally, the Semiconductor and Electronic Component Manufacturing Promotion Scheme (SPECS) 2.0 should be introduced with subsidies ranging from 25 to 40 percent to support potential investors in the brownfield and greenfield categories.
"Import tariffs on priority sub-assemblies and components such as camera modules, display modules and mechanical components need to be urgently rationalized in line with major competing economies," the CII report added.
"Creating export demand for Indian-made products has the dual advantage of increasing export volumes and helping boost domestic manufacturing of components and sub-assemblies," according to the CII.
The political support will help realize various economic benefits arising from the development of component and sub-assembly ecosystem in India.
Last year, demand for components and subassemblies amounted to $45.5 billion to support $102 billion worth of electronics production.
The report identified five priority components/subassemblies of batteries (lithium-ion), camera modules, mechanical components (cases, etc.), displays and PCBs, which are classified as high priority for India.
Together they accounted for 43 percent of component demand in 2022 and are expected to grow to $51.6 billion by 2030, according to the report.
These components either have nominal production in India or are highly dependent on imports.
"Similarly, PCBA is a high potential category for India as most of the demand is met by imports. This segment is expected to grow by 30 per cent, leading to demand creation of 87 .46 billion dollars by 2030," the report states.
The report recommended developing a plan aimed at providing fiscal support for selected components and subassemblies in the range of 6 to 8 percent.
"Fiscal support will be extended for a period of 6 to 8 years to ensure adequate time to expand and improve value addition," he added.
Additionally, the Semiconductor and Electronic Component Manufacturing Promotion Scheme (SPECS) 2.0 should be introduced with subsidies ranging from 25 to 40 percent to support potential investors in the brownfield and greenfield categories.
"Import tariffs on priority sub-assemblies and components such as camera modules, display modules and mechanical components need to be urgently rationalized in line with major competing economies," the CII report added.
"Creating export demand for Indian-made products has the dual advantage of increasing export volumes and helping boost domestic manufacturing of components and sub-assemblies," according to the CII.
The political support will help realize various economic benefits arising from the development of component and sub-assembly ecosystem in India.
