Industry expects increased emphasis on electronics manufacturing from the new government

In his inaugural address following the results of the General Elections, in which the BJP fell short of a majority but crossed the halfway mark with its allies, Narendra Modi exuded optimism about securing a third consecutive term.

Remaining steadfast in his pre-election pledges, Modi reiterated his commitment to advancing the agenda set forth during his government's tenure over the past decade. In pursuit of its vision of a self-reliant India, the NDA government had launched several production-linked incentive (PLI) schemes for mobile phones, IT hardware, and other sectors. In his third term, Modi aims to bolster production in electronics and semiconductor industries. During his address, Modi said, “We made India the second largest smartphone manufacturer. Now, we will increase work in semiconductors and electronics production sectors.”

The industry is buoyed by this sentiment.

Amit Khatri, Co-Founder of home-grown wearable company Noise says, “We trust that the new administration will play a significant role in advancing India's electronic manufacturing sector. Guided by the vision of Aatmanirbhar Bharat, we also hope for government support in localising component production and creating an environment where homegrown brands can lead India on the global stage. We are optimistic about the future and are ready to collaborate with the new government to make India a global leader in the smart wearable industry, driving economic growth, creating jobs, and delivering innovative products that enhance the lives of millions."

While India has made strides with smartphone manufacturing and with laptops and PCs also being manufacturing locally, the wearable and TV industry too are expecting a big push from the new government. Over the last few years, looking at the make-in-India plush, many Indian players have already started manufacturing/assembling their products locally in the country.

Varun Gupta, Cofounder, Boult says, “The robust growth of India's manufacturing sector, serving as the primary driver amidst a global slowdown, underscores the nation's resilience with over 8.2% GDP growth. Particularly, the electronics sector is poised to transcend mere import substitution and evolve into a formidable export hub. The PLI scheme tailored for hearables and wearables is poised to play a pivotal role in realizing the government's ambitious export targets, providing a substantial boost to the sector's competitiveness and contribution to the global market.”

Continued adherence to policies and a dedicated emphasis on infrastructure initiatives is being looked upon as the need of the hour for this industry.

Avneet Singh Marwah, CEO of SPPL, contract manufacturer for TVs, washing machines and AC in India says “Our industry thrives on stability and conducive policies. We look forward to a government committed to fostering innovation, streamlining regulations, and investing in infrastructure. Expedited project completions and a reduction in GST on televisions and air conditioners from 28% to 18% will further propel our sector's growth, enabling us to contribute significantly to India's economic progress. Together, with the right governmental support, we aim to drive not just our company's success, but also contribute significantly to India's journey towards becoming a global electronics hub.”