Elsina, an association of electronic parts manufacturers, is seeking a 725 billion rupee (US$8.57 billion) aid package to boost local production of raw materials and reduce dependence on imports, industry sources said. The Electronic Industries Association of India (Elsina), the oldest industry body for the electronics sector in India, has estimated that the shortfall in demand and supply of inputs in the electronics sector has led to an estimated US$248 billion (approx. It is estimated that this will increase to Rs. Electronics production is expected to be worth $500 billion, much of which will come from imports. Industry groups expect government support for non-semiconductor components could reduce the domestic deficit by $146 billion (Rs 12.36 billion) to $102 billion (Rs 8.63 billion).
Elsina Secretary General Raju Goel told PTI that unlike finished products, where a factory’s output can be up to 16 times the invested capital, electronic component factories generate output that is at most three times the invested capital. Ta.
“People are hesitant to expand their investments in electronic components due to low profit margins, high operational costs and long preparation times. Therefore, we are asking the government to take steps to encourage the expansion of the industry. PLI has requested $8.57 billion, including $2.14 billion in capital expenditures and $6.43 billion in other expenses,” Goel said.
The government is actively considering a comprehensive package to support the production of non-semiconductor electronic components.
Elcina includes small electronic components, printed circuit boards, some discrete semiconductors and active components, and metal parts in their estimates.
According to industry groups, components that require support account for 60% of the total cost of a finished product.
Goel said that out of the 60%, non-semiconductor components account for 40% of the total product value and 20% are semiconductors.
The government has already introduced the India Semiconductor Programme, under which it has so far approved investments worth Rs 1.52 billion.
Goel said the industry is labor-intensive, so support for non-semiconductor components will create 5 million additional jobs by 2030.
“We expect support for the non-semiconductor components sector to attract an additional $36 billion in investment by 2030,” he said.
According to Elcina, India’s non-semiconductor component production is expected to reach about $13 billion in 2022, and if business as usual continues, it will reach about $20.7 billion by 2026 and $37 billion by 2030. , this would result in a deficit of $248. In the next six years, this segment will reach $1 billion.
