electronic components
Alsina, an organization of electronics components manufacturers, has sought a support package of Rs 72,500 crore ($8.57 billion) to promote local production of raw materials and reduce dependence on imports. The Electronic Industries Association of India (ELCINA), the oldest industry organization in the Indian electronics sector, estimates that the demand-supply deficit of inputs in the electronics sector will increase to $248 billion (about Rs 21 lakh crore) by 2030, resulting in an estimated Rs 500 billion. Dollar electronics production will be met and this will be met largely by imports.
That’s why companies hesitate to invest
Unlike finished products, where a factory’s output can be up to 16 times the investment, an electronic components factory can produce a maximum of three times the capital invested, Raju Goyal, general secretary, Alcina, told PTI. “People hesitate to expand their investments in electronic components due to low returns, high operating costs and long manufacturing periods,” Goyal said. “We have therefore sought $8.57 billion from the government, which includes $2.14 billion for capital expenditure to encourage industry expansion and $6.43 billion as production linked incentive (PLI) scheme.”
The country’s deficit will be reduced
The industry body hopes that government support for non-semiconductor components can help reduce the deficit in the country from $146 billion (Rs 12.36 lakh crore) to $102 billion (Rs 8.63 lakh crore). The government is actively considering a comprehensive package to support the production of non-semiconductor electronic components. Alcina has included small electronic components, printed circuit boards, some semiconductors etc. in its estimate.
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