The Electronic Industries Association of India (ELCINA) has unveiled a strategic 10-point wish-list for Narendra Modi government 3.0, aiming to foster deep manufacturing and enhance India’s integration into the global electronics value chain.
“Electronics production is projected to grow from $107 billion in 2022 to $300 billion by 2026, and further to $500 billion by 2030, reflecting strong confidence from manufacturers and investors. Echoing the voice of the Indian Electronics Industry, ELCINA submits its 10 wishes for inclusion in the new government’s 100-day agenda to realise our vision of deep manufacturing and integrating with the global value chain!” the communication says.
ELCINA’s primary recommendation is for a substantial $10 billion package dedicated to non-semiconductor components. This initiative is envisioned to catalyse investments, driving the industry’s expansion towards the ambitious $500 billion target by 2030. The association underscores the importance of developing a comprehensive ecosystem to support this growth trajectory.
To foster an environment conducive to high-growth segments and advanced manufacturing, ELCINA has called for the establishment of 10 world-class Electronics Manufacturing Clusters (EMCs). These clusters would house state-of-the-art facilities for component manufacturing, significantly bolstering the industry’s infrastructure and capacity.
ELCINA further emphasised the necessity of boosting exports, setting a target of $20 billion in electronics components exports by 2030. ELCINA has also advocated for enhanced incentives for the semiconductor industry, asserting that the current $10 billion allocation is insufficient. The inclusion of the entire semiconductor manufacturing ecosystem under the India Semiconductor Mission, spanning from labs to fabs, is deemed essential.
Additionally, to address the skill gap in the semiconductor sector, ELCINA proposed the establishment of five industry-oriented Centres of Excellence for Skill Development and Training. These centres would provide specialised education and hands-on training, preparing a skilled workforce to meet the industry’s demands.
ELCINA has further suggested the extension of the 15% Concessional Corporate Income Tax rate for manufacturing companies up to March 2027. This fiscal incentive is crucial for maintaining the industry’s competitive edge. Additionally, the association urged the government to establish a technology acquisition fund to finance technology transfer fees, positioning India as a leading product nation.
Recognizing the pivotal role of small and medium enterprises (SMEs) in the electronics sector, ELCINA recommended the creation of an investment fund. This fund would provide low-cost finance or equity, facilitating joint ventures with larger players and enabling SMEs to scale up their operations.
Furthermore, ELCINA emphasized the need for genuine ease of doing business by simplifying the Import of Goods at Concessional Rate (IGCR) procedures and expediting regulatory clearances such as Customs and the Bureau of Indian Standards (BIS).
To support the capital goods industry in electronics, ELCINA recommends viability gap funding or capital expenditure subsidies. This financial support would be instrumental in enhancing manufacturing capabilities and driving innovation. Additionally, ELCINA called for the swift implementation of the DESH Bill/SEZ Act amendment, which includes provisions for duty-forgone basis sales by SEZ units to the Domestic Tariff Area (DTA).
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