As of today the Government of India has renewed incentive based schemes on production of domestic electronics to establish a full fledged FAB fabrication. It has been announced by the Indian Cellular and Electronics Association (ICEA).
The share of the Indian production houses in global electronics manufacture has risen steadily through the years 2012 to 2019, from 1.3% to 3.6% worldwide. The total production value in 2014 was Rs.1.9 lakh crore and in 5 years it has skyrocketed to a massive Rs.5.34 lakh crore in 2019 with a growth rate of 23% domestically.
However, the Indian manufacturers tend to incur a 10% loss in production per annum due to factors such as lack of adequate infrastructure, insufficient domestic supply and logistical damage and limited research and development. This also affects the product in terms of quality.
The Government now intends to structure a large electronics manufacturing dynamics on a global level and expects suggest there’s no better time to begin. Adding on to that, the first target is to manufacture 1 billion mobile handsets by 2025 valued at $190 billion while 600 million handsets are to be exported which has a market value of $110 billion.
Although to establish this faculty it requires large amount of capital and financial backing in amounts summing up to billions.
Further Moohindro stated “FAB manufacturing facility is a capital-intensive business, and it is present in very few geographies of the world. Hence, we should build a competitive environment. We need to be very aggressive in terms of providing proper infrastructure facilities such as water, power, and logistics apart from capital support.”
To conclude, India is taking a step forward announcing itself as force to be reckoned in the global electronic market.
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