India faces China, Vietnam in electronics manufacturing; eyes $300 billion in local production by FY26

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NEW DELHI: India’s counterattack against China and Vietnam in electronics manufacturing should get extra firepower.
The goal is $300 billion in production over the next four years, of which $120 billion is earmarked for exports; expansion of the product basket for incentives; large purpose-built industrial areas with modern facilities; and permits for factories accommodating up to 1 lakh workers with dormitories, kitchens, medical facilities and living quarters.
The plan is to give electronics manufacturing a scale that would ultimately lead to the creation of a strong supplier ecosystem, massive job opportunities and global service.
IT and Electronics Minister Ashwini Vaishnaw and Deputy Minister Rajeev Chandrasekhar presented the “Vision Document 2.0”, prepared by their ministry and presented by India Cellular & Electronics Association through its President Pankaj Mohindroo.
Vaishnaw said the government, which has already committed nearly $17 billion over the next six years to four production-linked incentive programs (PLIs) (semiconductors and design, smartphones, hardware and components) will offer more categories where the benefits will be extended to local manufacturing. These are likely hearing aids and wearables, industrial and automotive electronics, and telecommunications equipment.
The government wants the charge to come not only from global players such as Taiwan’s Foxconn and Wistron (both Apple contract manufacturers) and Korea’s Samsung, but also from “national champions” such as Optiemus, Dixon and Lava.
Vaishnaw said he spoke to the Ministry of Labor about the problems of setting up large factories with up to a lakh of employees and having housing complexes for workers.
Furthermore, he said his ministry is in the process of identifying land for the construction of large integrated manufacturing areas (up to 1,000 acres) with all necessary facilities such as land, electricity, roads and connectivity integrated, completely in line with what is allocated. in China and Vietnam.
The industry welcomed the proposal. “The plug-and-play model is indeed welcome. This eliminates worries about land acquisition, roads and infrastructure, electricity and connectivity,” said Sunil Vachhani, Dixon’s chairman.
Lava Chairman Hari Om Rai also said local companies need to go global while expanding manufacturing in India.
Minister Chandrasekhar said growing digital consumption and diversifying global value chains will help achieve the goals.
Chinese conspicuous by its absence
The mega meeting of local and global electronics manufacturers had no Chinese players as attendees or speakers.
Asked about the role India sees for the Chinese in Indian electronics manufacturing, Junior IT and Electronics Minister Chandrasekhar said: “We don’t have a particular view… the concept of trust in the value chain is an important attribute in the post-Covid world and any investment and any investment partner that meets the criteria of trust can manufacture.
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