Govt. Undertakes Several Initiatives to Promote Electronics Manufacturing in India
25 July 2022: The Govt. is focused on its important objective of building the overall semiconductor ecosystem and ensure that, it in-turn catalyses India’s rapidly expanding electronics manufacturing and innovation ecosystem.
As a result of several initiatives taken by the Government and efforts of the industry, the domestic production of electronic goods has increased substantially from Rs.2,43,263 crore (USD37 billion) in 2015-16 to Rs.5,54,461 crore (USD74.7 billion) in 2020-21 growing at a Compound Annual Growth Rate (CAGR) of 17.9%.
As semiconductors form a major part of all electronic products, as a result of growth in electronics manufacturing sector, semiconductor market in India has also witnessed proportionate growth over the last few years. As per the industry estimate, the semiconductor consumption in India was around INR 1.1 lakh crore in year 2020 which is being met through imports due to absence of commercial semiconductor fabs in India.
The government is very focused on its important objective of building the overall semiconductor ecosystem and ensure that, it in-turn catalyses India’s rapidly expanding electronics manufacturing and innovation ecosystem. This vision of AtmaNirbharta in electronics & semiconductors was given further momentum by the Union Cabinet chaired by Prime Minister approving the Semicon India programme with a total outlay of INR 76,000 crore for the development of semiconductor and display manufacturing ecosystem in our country.
Setting up of Semiconductor unit requires huge investments and necessitates suitable infrastructure like availability of uninterrupted Power and Clean Water. Further, Semiconductors manufacturing is a very complex and technology-intensive sector with huge capital investments, high risk, long gestation and payback periods, and rapid changes in technology which require significant and sustained investments. However, the Government is committed to make all round efforts to develop semiconductors and display manufacturing ecosystem in India.
