Electronics production in the country is expected to reach $300 billion by 2026, industry body ICEA said in a report on Monday.
The National Policy on Electronics (NPE) 2019 had set a target of achieving a turnover of $400 billion by 2025.
However, the industry will be unable to achieve the target set by NPE 2019, due to the adverse impact of COVID-19 pandemic on the sector, the report said, adding that “the COVID-19 pandemic brought with it unforeseen and unprecedented challenges.”
“The NPE 2019 targets for electronics production in 2025-26 at $300 billion appears to be more realistic considering the disruption on account of COVID-19 in the past 18 months which has been aggravated with the new variants of the COVID-19 virus such as Omicron,” the report said.
The India Cellular and Electronics Association (ICEA) Chairman Pankaj Mohindroo while sharing the details of the report said that the reduced target still aims for a 400 per cent 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 make any changes in 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 by 2025-26.
“If India is able to achieve the manufacturing target of $300 billion for electronics, the domestic market demand may be met in full by such manufacturing. This necessitates that $120 billion worth of electronic products would be required to be exported to the global market,” the report said. Business Standard