Shifting from import substitution to export-led growth in electronics

You recently notified the new production-linked incentive (PLI) scheme for electronics components? How do you see this helping increase value addition, which has not been very high so far?

- ASHWINI VAISHNAW

In 10 years we have increased electronics production in the country five times at a 17 per cent compound annual growth rate (CAGR), and electronics exports six times at a CAGR of more than 20 per cent. PLI has a major role in this growth, generating 2.5 million additional jobs in electronics. Domestic value addition has increased to 20 per cent. Compare this with the highest value addition in any one country. The highest in a country is 38-40 per cent, which was achieved after nurturing the industry for 30 years. We have attained 20 per cent in 10 years. Our component scheme fits well into this journey. We started with finished goods, then modules, and now components. All this will help us in doubling value addition in five years. We think today, we are well placed in electronics, which can grow much faster.