NEW DELHI: Govt’s efforts to deepen the Indian component ecosystem for electronics has received a massive boost with domestic and international companies putting in applications for investing over Rs 1.1 lakh crore in new projects – almost twice to the original target – which have the potential to result in creating incremental production to the tune of Rs 10.3 lakh crore when fully realized.
Govt made clear that there are no special provisions for getting investors from China and said the “law of the land is well known” when dealing with investment proposals from countries that share land borders with India. Currently, such investment applications are dealt under the Press Note 3 (PN3) provision that was introduced in April 2020. “The process related to such applications is well established. The law of the land is well known,” electronics and IT minister Ashwini Vaishnaw said when asked specifically on investments from Chinese companies.
The minister said the plan is to make India self-sufficient when it comes to supply chain for components which can cater to various manufacturing industries. Once built, this supply chain will also look at global markets. “Swadeshi (indigenous) electronics components will position Bharat as a global supplier,” Vaishnaw said.
A whole host of companies have applied under the scheme and these are believed to include global giants such as Foxconn and Flex. On the local side, companies such as Tata, Dixon, Amber and Optiemus are understood to have filed applications.
Vaishnaw said against an original incremental production target of Rs 4.6 lakh crore through the scheme which promises benefits of Rs 22,805 crore, the current number of applications (at 249) can scale this up to Rs 10.3 lakh crore. “The scheme had envisaged an employment of 91,600 people. But now we expect this to go up to 1.4 lakh workers.”
The minister said around 60% of the applications are by Micro, Small & Medium Enterprises (MSMEs), which would ensure that the supply chain is deep-rooted and exhaustive.
The single-biggest investment proposal that the scheme has received is to the tune of Rs 22,000 crore, the minister said, adding that the govt will vet the proposals swiftly so that projects can begin faster.
The category of ‘enclosures for mobile, IT hardware products and related devices’ has received 16 proposals worth Rs 35,813 crore, while ‘flexible printed circuit board (PCB)’ and related segments has got 11 proposals worth Rs 16,542 crore. The ‘electro-mechanicals’ category has 87 applications worth Rs 14,362 crore, and multi-layer PCB has seen 43 applications worth Rs 14,150 crore. Other categories include display and camera module sub-assembly, and capital goods that are used in electronics manufacturing .
“This is a testament to the growing global confidence in India’s electronics manufacturing, policy stability, and competitive advantages,” Vaishnaw said, adding that many categories have received proposals for the first time.
He said that the govt has asked companies to pursue original design work within India to create local IPs.
Sunil Vachani, Chairman of Dixon, said the scheme will ensure that the current value addition in mobile phones and IT hardware products will jump substantially and that will make India-made products globally competitive. “We at Dixon have committed a huge investment of almost Rs 3,000 crore and are confident of rolling out the components and modules in the very near future with one factory already operational and one factory for display modules getting ready by December.”
Pankaj Mohindroo, Chairman of industry body ICEA, said that the manufacturing of sub-assemblies and components will firmly be established in the country now, substantially increasing India’s manufacturing prowess and global competitiveness.
Govt made clear that there are no special provisions for getting investors from China and said the “law of the land is well known” when dealing with investment proposals from countries that share land borders with India. Currently, such investment applications are dealt under the Press Note 3 (PN3) provision that was introduced in April 2020. “The process related to such applications is well established. The law of the land is well known,” electronics and IT minister Ashwini Vaishnaw said when asked specifically on investments from Chinese companies.
The minister said the plan is to make India self-sufficient when it comes to supply chain for components which can cater to various manufacturing industries. Once built, this supply chain will also look at global markets. “Swadeshi (indigenous) electronics components will position Bharat as a global supplier,” Vaishnaw said.
A whole host of companies have applied under the scheme and these are believed to include global giants such as Foxconn and Flex. On the local side, companies such as Tata, Dixon, Amber and Optiemus are understood to have filed applications.
Vaishnaw said against an original incremental production target of Rs 4.6 lakh crore through the scheme which promises benefits of Rs 22,805 crore, the current number of applications (at 249) can scale this up to Rs 10.3 lakh crore. “The scheme had envisaged an employment of 91,600 people. But now we expect this to go up to 1.4 lakh workers.”
The minister said around 60% of the applications are by Micro, Small & Medium Enterprises (MSMEs), which would ensure that the supply chain is deep-rooted and exhaustive.
The single-biggest investment proposal that the scheme has received is to the tune of Rs 22,000 crore, the minister said, adding that the govt will vet the proposals swiftly so that projects can begin faster.
The category of ‘enclosures for mobile, IT hardware products and related devices’ has received 16 proposals worth Rs 35,813 crore, while ‘flexible printed circuit board (PCB)’ and related segments has got 11 proposals worth Rs 16,542 crore. The ‘electro-mechanicals’ category has 87 applications worth Rs 14,362 crore, and multi-layer PCB has seen 43 applications worth Rs 14,150 crore. Other categories include display and camera module sub-assembly, and capital goods that are used in electronics manufacturing .
“This is a testament to the growing global confidence in India’s electronics manufacturing, policy stability, and competitive advantages,” Vaishnaw said, adding that many categories have received proposals for the first time.
He said that the govt has asked companies to pursue original design work within India to create local IPs.
Sunil Vachani, Chairman of Dixon, said the scheme will ensure that the current value addition in mobile phones and IT hardware products will jump substantially and that will make India-made products globally competitive. “We at Dixon have committed a huge investment of almost Rs 3,000 crore and are confident of rolling out the components and modules in the very near future with one factory already operational and one factory for display modules getting ready by December.”
Pankaj Mohindroo, Chairman of industry body ICEA, said that the manufacturing of sub-assemblies and components will firmly be established in the country now, substantially increasing India’s manufacturing prowess and global competitiveness.
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