In the recent past India has seen declining imports in sectors such as electronic goods, medical devices and solar modules. Does this indicate the improved manufacturing situations in India? The country has all the reason to cheer as it has seen an increase in industrial production even as demand for domestically manufactured items see an uptick. In electronics space India is building a vibrant ESDM ecosystem that is part of a global supply chain. To cater to domestic and exports demand India has set the target to reach US$ 300 billion worth of electronics manufacturing by 2025-26.
Government initiatives such as Digital India, make in India, ease of doing business, PLI scheme, India Semiconductor Mission, burgeoning startup ecosystem and favorable FDI Policy for electronics manufacturing have simplified the process of setting up manufacturing units in India. The policies have started bearing fruits now.
For example, Reliance industries has started finding ways to enter into the semiconductor manufacturing business. For the same it is discussing with a couple of global chip manufacturers who have the possibility to become the technology partners. Tata Group after acquiring Wistron’s iPhone manufacturing plant is now planning to invest Rs 200 Crore for a new semiconductor testing and packaging unit.
Karnataka government has approved around 91 investments of industrial ventures worth Rs 7,660 Crore by the state-level single-window clearance committee from major firms such as Maruti Suzuki India, South West Mining, Tata Semiconductor, Krypton (India) Solutions, and Aequs Consumer.
The government of Assam, with a new semiconductor policy, is optimistic to have an investment of Rs 40,000 Crore to boost the semiconductor manufacturing ecosystem.
Netherlands government has discussion with the Indian government to escalate the presence of Dutch semiconductor firms.
India Cellular and Electronics Association (ICEA) in a meeting with Indo-US Task Force for Electronics aimed at elevating the electronics trade between India and the United States to reach USD 100 billion within a decade.
In automotive sector a cumulative investment of Rs. 12.5 trillion in vehicle production and charging infrastructure would be required until 2030 to meet India’s EV ambitions.
Some of the recent planned investments and developments in the automobile sector include Nissan and Renault plan to invest US$ 600 million in India over the next 3-5 years, MG Motor to invest US$ 100 million to expand capacity, Tata Group to invest heavily in EV portfolio, Mercedes-Benz’s has plans to invest in emobility, Mahindra & Mahindra to invest Rs. 10,000 crore for an EV manufacturing plant in Pune, Maruti Suzuki announced to spend Rs. 7,000 crore, Kinetic Engineering Limited invested in Ahmednagar to set up a dedicated production line with an initial capacity of 5,000 sets per month to name a few.
Recently concluded G20 Summit in New Delhi clearly establishes a leadership role for India as it measures to push global adoption of digital public infrastructure and drives a global framework recognition, the One Future Alliance, and a global repository for the world’s leading economies.
Amidst all the developments, beware of the vicious design against India Inc. The pursuit of excellence and guard against the international conspiracies to hinder the progress and malign the image of the nation needs to be defeated at all cost.
Sooner than later India is likely to achieve its goal is to establish as a global hub for semiconductor design, manufacturing and technology development, in line with the vision of India Semiconductor Mission.
By Devendra Kumar, Editor in Chief, ELE Times
