"MeitY Secretary Reveals Plans for New Schemes in Electronics Component Manufacturing"

Addressing the evolving landscape of India's mobile phone market, the government announced on Monday that as 99 percent of the local mobile phone market is now met through domestic manufacturing, the focus is shifting towards enhancing competitiveness, value addition, and fostering exports for the next phase of growth.

S. Krishnan, Secretary of the Ministry of Electronics and Information Technology (MeitY), shared insights during the CII Electronic Summit, highlighting the need for companies to explore avenues beyond assembly units and focus on elevating India's position in the value chain.

Krishnan emphasized the necessity for companies to not solely rely on the existing 10 to 15 percent value addition to assembly units but to explore possibilities for further value addition. He stated, "If our competitiveness needs to keep getting better, then the challenge really is to look at what else we can do, how can we move up in the value chain?"

Recognizing that no single country can dominate the entire value chain, Krishnan outlined a strategic approach, suggesting that India aims for a significant portion of the value chain. Drawing parallels with China, he noted that China commands approximately 40 to 45 percent of the entire value chain in manufacturing. Krishnan envisioned India targeting a similar range, aiming for 35 to 40 percent of the overall value chain.

In alignment with this vision, the government is actively working on formulating new schemes to boost electronics component manufacturing in the country. Krishnan emphasized the importance of sustained efforts in enhancing competitiveness, value addition, and securing a more substantial share in the global value chain to propel India's electronics manufacturing sector to new heights.

HBL