A senior government official stated on Monday that the government’s current focus is on increasing the nation’s production of electronics components, and a new program for the same is being developed.
S Krishnan, Secretary, Ministry of Electronics and IT (Meity), stated at the CII Electronic Summit that while domestic manufacturing accounts for 99 percent of the local mobile phone market, companies must export in order to move into the next phase of growth by increasing value addition and competitiveness.
“If our competitiveness needs to keep getting better then the challenge really is to not just rely on about 10 to 15 per cent of the value addition to assembly units in the country but to look at what else we can do, how can we move up in the value chain?” said Krishnan.
According to him, only a small section of the value chain is what India has to focus on, and no one nation would ever own the full value chain.
“China is perhaps the finest example for India, as it accounts for 40 to 45 percent of the value chain’s manufacturing in China. We might be able to consider roughly 35 to 40 percent of the total value chain, according to Krishnan.”
According to him, the government is developing the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), a second iteration of the incentive program for electronics components.
“The Modified Special Incentive Package Scheme, or MSIPS, was introduced earlier. Currently, SPECS 1.0 is in place for components. We’re working on the upcoming specs. That will happen after taking the electronics industry’s problems into account, according to Krishnan.
He suggested that the sector consider manufacturing the capital equipment needed for the production of electronics domestically.
According to the Meity Secretary, the government is also updating its programs to support research and development and is eager to collaborate with business on these changes.
