India is gearing up for a massive boost in its electronics and semiconductor sector. A task force, established by the Ministry of Electronics and Information Technology (MeitY), is set to recommend a substantial allocation of ₹ 44,000 crore from 2024 to 2030, according to a report by Business Standard.
The initiative aims to simplify business operations for global firms designing products in India and safeguard domestic companies by managing and leveraging standard essential patents (SEPs).
Led by Ajay K Sood, the principal scientific advisor to the government, the task force proposes substantial incentives: ₹ 15,000 crore for electronic products (systems), ₹ 11,000 crore for semiconductor products, and ₹ 18,000 crore for talent development, infrastructure, logistics, and technology acquisition.
This move, awaiting government approval, could rival the production-linked incentive (PLI) scheme for mobile devices and electronics. Established in January, the task force includes industry leaders like Ajai Chowdhry, founder of HCL and chairman of EPIC Foundation, and Sunil Vachani, MD of Dixon Technologies.
The proposal focuses exclusively on benefiting Indian companies, defining them as entities where Indians control 51% of the shareholding, headquartered in India, with all global profits accruing to the Indian parent company.
Ajai Chowdhry emphasises the initiative’s long-term vision, highlighting the need to start now to reduce India’s electronics import bill. The task force also advocates for extending the PLI scheme until 2030, enhancing R&D tax policies, and promoting Indian products globally through subsidies and brand promotion.
Identifying 30 essential electronic products and 40 types of chips crucial for India’s needs, the report highlights the potential growth of the electronics market to $3 trillion by 2047, with exports targeting $1 trillion.
