India’s journey towards becoming a self-reliant nation in electronics manufacturing marks a pivotal shift in the industry. With each passing year, the domestic production of electronic components has seen a significant uptick, leading to a notable decrease in the import of various electronic parts. This trend is a clear indication of the strengthening capabilities within India’s manufacturing sector.
The Decline in Electronic Imports
Recent reports highlight a dramatic 40% decrease in imports of fully assembled electronic units, including smartphones, during the April-January period of FY24. This reduction is largely attributed to the burgeoning growth of local electronics manufacturing, particularly in the smartphone industry, which enjoyed a 5% year-on-year growth in 2023.
Government Initiatives Fueling Growth
The government’s production-linked incentive (PLI) scheme has played a crucial role in encouraging manufacturers to source components locally, significantly impacting the electronics manufacturing landscape. This initiative has led to a more cost-effective bill of materials (BoM) for electronic devices, propelling the sector towards higher growth rates.
Impact on Specific Components
The focus on domestic manufacturing has resulted in a substantial reduction in imports across various segments:
- Plastic Parts: The volume of imports for smartphone components, such as back covers and camera lenses, has dropped by 33%, with a 26.5% decrease in value.
- Mechanical Parts: Items like vibrator motors and screws have seen a 4% reduction in volume and a 1.6% decrease in value.
- Charger Adapters: Despite a 72% plummet in import volume, the value of imported charger adapters saw a slight increase of 1.3%.
Also read: Electric Mobility Scheme: A New Dawn for EV Adoption
Boost in Electronics Exports
Parallel to the reduction in imports, India’s electronics exports have witnessed a remarkable surge. From April to December 2023, exports grew by 22.24%, crossing the $20-billion mark, thanks to strong smartphone exports by giants like Apple and Samsung. Notably, iPhone exports alone constituted $7 billion in December 2023, showcasing India’s emerging prowess in the global electronics market.
Charting the Future of Electronics Manufacturing in India
The growth of electronics manufacturing in India signifies a strategic shift towards self-sufficiency and reduced dependency on imports. Supported by government initiatives like the PLI scheme, India is not only securing its economic stability but is also carving out a competitive stance in the global electronics industry. As domestic manufacturing continues to expand, the future looks promising for India’s electronics sector, with vast potential for innovation, job creation, and economic prosperity.
