NEW DELHI: As the government begins efforts to create benchmarks for electronic component manufacturing, industry players said on Monday that the move is aimed at creating an 'Atmanirbhar Bharat' and strengthening the supply chain to further expand exports. He said it will greatly contribute to building the chain.
The IT ministry has sought input from various stakeholders to formulate a production-linked incentive (PLI) scheme for the electronic components sector.
Experts say the move will reduce original equipment manufacturers (OEMs)' dependence on countries such as China and Vietnam to source various parts and subassemblies for their products.
“Optimus Electronics is committed to working with the government towards developing a complete electronics ecosystem in the country,” Optimus Electronics Managing Director A. Gururaj told IANS.
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“We welcome the government's proposal to extend PLI scheme to domestic electronic component manufacturing which will greatly contribute to creating a genuine Atmanirbhar Bharat,” Gururaj added.
The government's move will also create thousands of direct and indirect jobs.
Hundreds of thousands of new jobs have been created in the past decade since Prime Minister Narendra Modi launched the 'Make in India' programme.
Electronics manufacturing alone generated more than $100 billion in electronics manufacturing and nearly 12 million new jobs.
Super Plastronics Private Limited (SPPL) CEO Avneet Singh Marwa told IANS that the move is committed to boosting domestic component manufacturing and is in line with the 'Make in India' initiative. He said this is an important step towards achieving this goal.
“Currently, we rely heavily on outsourcing our key electronic components from various countries. However, the introduction of in-house manufacturing will allow us to increase our competitiveness through more competitive pricing and our supply chain infrastructure. ”, Marwa elaborated.
According to experts, PLI schemes for electronics are definitely revolutionary.
“We have seen major companies bring semiconductor fabs online and others quickly follow suit to power this burgeoning ecosystem,” they added.
Prabhu Ram, head of industry intelligence group at market intelligence firm CMR, told IANS that extending the PLI scheme to electronic component manufacturing would lead to dependence on foreign suppliers, which is a critical bottleneck in India's domestic electronics ecosystem. This is a strategic measure to address the issue.
“By encouraging local production, this policy will strengthen domestic manufacturing capacity and, over time, create a more resilient country with strong domestic upstream and downstream capabilities,” Ram told IANS. “We aim to build an end-to-end electronics value chain.”
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