As the Chinese manufacturers are not present in the export market, India’s mobile phone production is anticipated to witness a $26 billion deficit
In a press conference back on Tuesday, Union Minister of State for Electronics and IT, Rajeev Chandrasekhar said that India is now moving in the right direction to achieve the set target of $300 billion in electronics manufacturing. According to the minister, the set target is a colossal growth of 20-25 times in almost a decade.
As per the Vision Document 2.0 prepared by the IT Ministry and the India Cellular and Electronics Association (ICEA), the nation can reach this value in electronics manufacturing and exports by 2025-26 if product ranges with high potential for scale are shortlisted and move appropriately through policy measures and incentives. But, as the report of CNBC TV 18 authored by Ashmit Kumar, the country’s ambition to meet this target in manufacturing by the stipulated time could be a huge challenge because as per MeitY’s vision document report of 2022, India is likely to meet $225 billion in production.
One of the major challenges is that Chinese manufactures are barred from exports and with the ongoing geopolitical tussles India has undertaken various efforts to depend less on Chinese technology and become self-reliant. Now, as the Chinese manufacturers are not present in the export market, India’s mobile phone production is anticipated to witness a $26 billion shortfall. Commenting on the above report by CNBC, minister Rajeev Chandrasekhar tweeted on his official account that there are possible reasons that will hinder India from achieving this target.
According to an exclusive report of IANS, in terms of locally-manufactured mobile phones, India's electronics industry saw a record exports of electronic goods at an estimated Rs 1,85,000 crore in FY22-23 -- compared to Rs 1,16,936 crore in FY21-22 -- marking a whopping 58 percent increase. Industry body ICEA added that compared to any other financial year, mobile phone exports have now created a history in the nation by crossing the $10 billion mark, grabbing an approximate value of $11.12 billion (over Rs 90,000 crore) in this current financial year.
Kumar’s report also highlighted that the country’s electronics industry is still dealing with the challenges to meet the in-house demand and most of the IT hardware products are imported in India, which clearly indicates the current status of domestic electronics manufacturing. Amid this downbeat scenario, there are some positive vibes in a couple of sectors. Automotive electronics, consumer electronics, and wearables have done a tremendous job in grabbing revenue and these are actually contributing to the growth of the industry.