The Indian governments emphasis on positioning the country as a global manufacturing hub has spurred a surge in demand for electronic components and sub-assemblies, anticipated to reach USD 240 billion by 2030. This trajectory aligns with the ambitious goal of achieving USD 500 billion in electronics production while creating over 2.8 lakh new jobs by 2026.A recent report unveiled projections indicating robust growth in priority components and sub-assemblies, particularly PCBAs, expected to expand at a staggering rate of 30 percent, culminating in a value of USD 139 billion by 2030. These insights, presented in a report by the Confederation of Indian Industry (CII), offer key recommendations to devise a scheme aimed at further bolstering the industry.Demand Dynamics and Import DependencyIn 2021, the demand for components and sub-assemblies totaled USD 45.5 billion, supporting USD 102 billion in electronics production. The report delineates five priority components/sub-assemblies—batteries (lithium-ion), camera modules, mechanicals (enclosures, etc.), displays, and PCBs—identified as high-priority segments for India. These segments, accounting for 43 percent of the components demand in 2022, are anticipated to grow to USD 51.6 billion by 2030. Notably, these components either witness nominal production in India or heavily rely on imports.Focus on PCBAs and Fiscal SupportThe report accentuates the potential of PCBA as a high-growth category for India, given its substantial reliance on imports. This segment is anticipated to grow by 30 percent, culminating in a demand creation of USD 87.46 billion by 2030. To foster this growth, the report recommends crafting a scheme offering fiscal support ranging from 6 to 8 percent for select components and sub-assemblies over a period of 6 to 8 years, facilitating scaling up and value addition.SPECS 2.0 and Import Tariffs RationalisationThe introduction of the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) 2.0 is proposed, offering subsidy support ranging from 25 to 40 percent for potential investors across brownfield and greenfield categories. Urgent rationalisation of import tariffs on priority sub-assemblies and components such as camera modules, display modules, and mechanicals is also recommended to align with competitive global economies.
