Given the evolving wants of the nation and the geopolitical adjustments to the worldwide worth chains (GVCs), the federal government’s present technique is to broaden and deepen the digital manufacturing area, Rajeev Chandrasekhar, the Union Minister of State for Electronics & IT and Skill Development, has stated.
India must emerge as a worth creator to the provision and worth chains as an alternative of simply being a commodity exporter, the minister stated whereas addressing the ninth Annual Forum 2022 of the Public Affairs Forum of India (PAFI).
Chandrasekhar additional stated the electronics manufacturing alternative in India is big and the federal government is systematically addressing coverage gaps with a holistic pan-industry imaginative and prescient. The authorities mega imaginative and prescient contains systematically working in the direction of a uncommon earth supplies technique, too, he added.
“In electronics, we started with mobile phones, where we have been very successful. We now intend to deepen it further — and get into components (PCBs) — and eventually create an ecosystem of materials’ strategic materials, including lithium and the feedstock that goes into PCBs. These are the areas which have been long neglected, as we only become commodity exporters. We focussed on exporting the raw material, not focussing on creating value on those materials. We are now seeing a policy framework of broadening and deepening [electronic manufacturing ecosystem]. This deepening goes all the way to a component like semiconductors and beyond that to critical materials,” Chandrasekhar stated.
Mentioning India’s first lithium-ion plant in Tirupati being arrange by an entrepreneur, he added kids are at this time driving the digital India imaginative and prescient.
“The government has systematically built back the manufacturing sector with PLI and other programmes in the past 6-7 years. The world today is looking at India, apart from Vietnam and Taiwan, as a trusted source of technology,” he added.
Chandrasekhar additionally spoke in regards to the Digital India Bill that may quickly be submitted for consultations with stakeholders. He stated the brand new invoice will tackle particular adjustments and disruptions within the tech area over time as they evolve.
The authorities on September 21 modified the Programme for improvement of semiconductors and show manufacturing ecosystem in India. Under the modified programme, a uniform fiscal help of fifty% of challenge value will likely be offered throughout all know-how nodes for establishing of Semiconductor Fabs. “Given the niche technology and nature of compound semiconductors and advanced packaging, the modified programme shall also provide fiscal support of 50% of capital expenditure in pari-passu mode for setting up of compound semiconductors / silicon photonics / sensors / discrete semiconductors fabs and ATMP/OSAT,” stated a authorities assertion.
According to the federal government, the programme has attracted many international semiconductor gamers to arrange fabs in India. The modified programme will expedite investments in semiconductor and show manufacturing in India. “On the basis of discussion with potential investors, it is expected that work on setting up of the first semiconductor facility will commence soon,” the assertion stated.
Production Linked Incentive (PLI) scheme throughout 14 key manufacturing sectors, was launched in 2020-21 as means to spice up the Make in India initiative. The PLI Scheme incentivises home manufacturing in strategic progress sectors the place India has comparative benefit. This contains strengthening home manufacturing, forming resilient provide chains, making Indian industries extra aggressive and boosting the export potential. PLI Scheme is predicted to generate important positive factors for manufacturing and employment, with advantages extending to the MSME eco-system. NewsNCR