Electronics Industry Seeks ₹72,500 Cr to Cut Import Dependency

The Electronic Industries Association of India (Elcina) has requested a ₹72,500 crore ($8.57 billion) support package to boost domestic production of non-semiconductor electronic components and reduce import reliance.

Elcina estimates that India’s demand-supply gap for electronic inputs could balloon to $248 billion (₹21 lakh crore) by 2030 to meet projected electronics production worth $500 billion. The proposed support could cut the deficit by $146 billion (₹12.36 lakh crore).

Elcina Secretary General Rajoo Goel explained that low returns, high operational costs, and long gestation periods discourage investments in this sector. The industry body has sought $2.14 billion for capital expansion and $6.43 billion under the Production Linked Incentive (PLI) scheme to address these challenges.

Non-semiconductor components, which make up 40% of the cost of electronic products, are key to this initiative. Elcina projects the support could attract $36 billion in investments and generate 50 lakh jobs by 2030.

India’s non-semiconductor component production, valued at $13 billion in 2022, is expected to grow to $20.7 billion by 2026. Without intervention, the deficit in this segment could reach $248 billion by 2030.