New Delhi, June 21: India, on its way to becoming the global electronics manufacturing hub, has doubled down on the local manufacturing of multiple products -- mobile phones and their components, televisions, semiconductors and other devices -- and the momentum is only going to grow in the next five years riding on the production-linked incentive (PLI) scheme, according to industry experts.

Reports claim that India's electronic manufacturing is projected to reach $250 billion in the next five years -- from $105 billion (around 3 per cent of the GDP) in FY23. The country aims to reach $300 billion in electronics manufacturing by 2030. In April, electronic goods exports were recorded at $2.65 billion compared to $2.10 billion during April last year, registering a growth of 25.80 per cent, according to the Invest India data. Indian Space Startups Increase 200 Times in Just Two Years Due to Policy Decision Taken by PM Narendra Modi: Union Minister Jitendra Singh.

As per the India Cellular and Electronics Association (ICEA) data, mobile phone production surged from Rs 18,900 crore in 2014-15 to an estimated Rs 4.10 lakh crore in FY24, registering an increase of a massive 2,000 per cent, driven by the PLI scheme. Pankaj Mohindroo, Chairman of ICEA, said that the ‘continuity’ in policymaking is critical to the electronics manufacturing growth.

“We are geared up for the five-year sprint till 2030 on the way to transforming India into a global hub for electronics manufacturing and Viksit Bharat,” he added. Apple has been a shining story of the country’s local manufacturing dream. The iPhone maker exported iPhones worth more than Rs 16,500 crore in the first two months of the current financial year -- accounting for more than 80 per cent of the country's total production/assembly of iPhones.

Foxconn, the key Apple supplier, led total exports at about 65 per cent. For FY 24, Apple saw a total iPhone production of around $14 billion. The company has increased iPhone production and one out of seven iPhones in the world is now being manufactured in the country, according to Prime Minister Narendra Modi.

The global chipmaking industry is also looking to establish operations in India, as the country emerges as a promising alternative to China amid tensions between Beijing and the West. Meanwhile, the PLI schemes for 14 sectors are projected to see investments worth Rs 3 lakh crore - Rs 4 lakh crore in the next couple of years, likely generating 2,00,000 jobs in sectors like semiconductors, solar modules and pharmaceutical intermediaries. India's Online Gaming Firms Affected by GST Hike, Witness Decline in Profit Margin, Operations Shutdown and Layoffs: Report.

According to Paritosh Prajapati, CEO of telecom gear maker GX Group, under PM Modi's leadership, India has witnessed major reforms in the last couple of years and the continuation of the new government will set those reforms into further action. “Manufacturing has been a major sector where the automobile, electronics, and pharmaceutical sectors have been growing extremely fast,” he noted.

(The above story first appeared on LatestLY on Jun 21, 2024 04:37 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website