STOCK MARKET BSE NSE

India has potential to export Rs 8 lakh crore worth motherboards between 2021-26: Report

India Cellular & Electronics Association (ICEA) Chairman Pankaj Mohindroo said the government is required to realise the cumulative export potential of Rs 8 lakh crore by 2026.

Published: 05th December 2020 03:13 PM  |   Last Updated: 05th December 2020 03:13 PM   |  A+A-

For representational purpose. (Photo | Pexels)

By PTI

NEW DELHI: India has potential to export motherboards, technically called printed circuit board assembly(PCBA), worth up to Rs 8 lakh crore between 2021-26, mobile devices industry body ICEA and EY said in a joint report.

However, in the absence of government incentives and subsidies the export potential will be around Rs 29,500 crore during the five year period, the report said.

India Cellular & Electronics Association (ICEA) Chairman Pankaj Mohindroo said the government is required to realise the cumulative export potential of Rs 8 lakh crore by 2026.

"If support of 4-6 per cent on exports of PCBAs can be provided, by 2025-26, the cumulative PCBA export for India can be about USD 109 billion (over Rs 8 lakh crore). However, if no support is offered, the export is estimated to dwindle to USD 4 billion (around Rs 29,500 crore)," the report said.

PCBA forms the base of electronic products. Mohindroo said the current size of PCBA industry in India is around Rs 2 lakh crore and it is expected to reach Rs 6.4 lakh crore during 2021-26.

The National Policy on Electronics 2019 (NPE) envisages electronic manufacturing turnover of USD 400 billion (Rs 26 lakh crore at the time policy was approved) by 2025, out of which USD 190 billion (Rs 13 lakh crore) is expected to come from the mobile phone segment.

According to ICEA, IT hardware -- laptop and tablet manufacturing -- has potential to contribute over Rs 7 lakh crore to the NPE target and PCBA can add another about Rs 8 lakh crore.

"We have requested for separate production linked incentives for PCBA. The consumption of PCBA in India will be majorly driven by mobile devices," Mohindroo said.

He said there are a lot of cost disabilities which India has to address to compete with other Asian countries like China, Vietnam etc.

"Standalone PCBA exports from India face cost disabilities against well-established manufacturing hubs, with large manufacturing capacities, such as China and Vietnam.

In addition, China offers various incentives for R&D activities, tax benefits on exported goods, policies to promote an export culture, significant investments across the value chain and technology transfer from global players," the report said.

India's exports of standalone PCBAs for mobile phones were USD 0.15 billion (Rs 1,100 crore) in 2019-20 and are expected to be USD 0.30 billion (Rs 2,200 crore) in 2020-21.

"For other electronic products, standalone PCBA exports are estimated to begin only from 2022-23 as manufacturing capacities increase in the country," the report said.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp