Electronic Industries Association of India (Elcina) has sought a $ 8.57 billion support package to boost local production of raw materials and cut reliance on imports. It has estimated that the demand-supply deficit for inputs in the electronics segment will increase to $ 248 billion by 2030 to cater to projected $ 500 billion electronics production and it would be met largely by imports.
As per the institution, unlike finished products where the factory output can go up to 16 times the investment, an electronic components factory can at the most generate an output of three times the invested capital.
It expects that the government’s support for non-semiconductor components can help reduce the deficit in the country by $ 146 billion $ 102 billion. The government is actively considering a comprehensive package to support the production of non-semiconductor electronic components.
Elcina has included miniature electronic components, printed circuit boards, some discrete semiconductors and active components, metallic components in the estimates. According to the institution, the components for which support is required account for 60 per cent of the total cost of a finished product.
It further highlighted that out of 60 per cent, non-semiconductor components account for 40 per cent of the total product value and 20 per cent are semiconductors. The government has already put in place the India Semiconductor Program under which it has approved investments worth Rs 15.2 billion to date.
It mentioned that non-semiconductor components production in India was around $ 13 billion in 2022 which is projected to reach around $ 20.7 billion by 2026 and around $ 37 billion by 2030 if the business continues as usual thereby leading to a deficit of $ 248 billion in the segment in the next six years.
