ICEA sees vast opportunity by 2025
The manufacturing of laptops and tablets presents a $100-billion opportunity for India by 2025 provided there is a ‘conducive policy environment’ and incentives, the India Cellular and Electronics Association (ICEA) said on Wednesday.
In a report titled ‘Aatmanirbhar Bharat: India’s Turning Point’, the industry body pitched for a PLI scheme for manufacturing of laptops and tablets on the lines of the one introduced for mobile phones in April 2020. Besides, ICEA sought creation of a conducive policy environment under Special Economic Zones (SEZs) to enable fast-paced electronics manufacturing relocation to India.“To reach the National Policy on Electronics, 2019, targets and for turning into a global manufacturing hub, we cannot depend on mobile phones manufacturing alone,” ICEA Chairman Pankaj Mohindroo said. “We need to focus on overall electronic sector, and personal computing devices present an excellent opportunity,” he added.
Noting that segments such as laptops, tablets, and desktop computers have lagged behind in terms of policy support, The report noted that the global market for these products is expected to be about $220 billion per year over the next five years. In India, the market size is estimated to continue to be about $7 billion for the same period.
“This presents an opportunity for India to ramp up the export of ‘Made in India’ laptops and tablets. Making in India for the world will give us a manufacturing value of $100 billion by 2025. It will also create 5 lakh additional jobs and a cumulative inflow of foreign exchange to the tune of $75 billion; and investment of over $1 billion,” the report said.
Mr. Mohindroo added that at the same time it would negate imports of targeted products from China leading to reduced trade deficit and greater self-reliance.
As per ICEA, if the right policy initiatives as recommended are undertaken to incentivise manufacturing and offset cost disabilities, India can export $75 billion worth of laptops and tablets between 2021 and 2025.
“High potential for exports… laptops and tablets have a large global demand compared to India’s own. India may target to occupy 26% of the global supply base of laptops and tablets by 2025, which will deepen its penetration into the global value chains for these electronics,” it said, stressing that a policy push is required that encourages large-scale manufacturing in India for the world.
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