 "Ravi Shankar Prasad")
Electronics manufacturing has seen a multi-fold jump ever since the National Democratic Alliance (NDA) government took over the reins at the Centre. Not only mobiles but also production of TVs, LEDs, chargers, batteries and adapters has risen in the past year. Electronics and IT Minister Ravi Shankar Prasad tells Kiran Rathee about a host of initiatives for the sector and the future road map. Edited excerpts:
Can you tell us about electronics manufacturing in India and what the future road map is?
We consume electronics worth about $80 billion (Rs 5.32 lakh crore) and most of these are imported. [Electronics consumption is] likely to reach $400 billion (26.6 lakh crore) by 2020. Two years down the line, I am satisfied with the road map emerging. Investment in electronics manufacturing was Rs 11,000 crore when our government came to power, now it is Rs 1.24 lakh crore.
I was very keen to promote India as a manufacturing hub for mobiles because India is has about 1.03 billion mobile phones. Around 40 mobile manufacturing units have come in the past year and a half. I am very keen that India emerges as a big hub of mobile manufacturing. There is a huge market in Asia, in neighbouring countries, in Asean countries, in Gulf countries and my advice for all these companies is Make in India for India, earn benefits here and also export outside.
But has success been limited to mobile or has Make in India spread across the bouquet of electronic goods. Also some people say it’s mostly assembling. What is your take on that?
I have to highlight the fact that I have seen good progress in other fields also. LCD/LED TV manufacturing have gone from 8.7 million units in 2014-2015 to 12 million units in 2015-16, a growth of 37 per cent. The production of LED products has risen to Rs 3,590 crore in 2015-16 from Rs 2,172 crore in 2014-15, a growth of 65 per cent. For me, what is more important is that seven charger/adapter manufacturing units, five battery pack manufacturing units and one wired headset unit have come up in the past three to four months. We are also encouraging automobile manufacturing units, defence electronics and medical electronics. Therefore, the entire ecosystem from policy initiative to incentive and government support is there. The second thing that we are doing is taking care of the duty scenario. The third is the entire ecosystem of electronic innovation and human resource creation.
What could be the size of the electronics industry in the coming years?
The sky is the limit and there are two reasons: The sheer size of the Indian market with 1.25 billion people, 1.03 billion mobile phones, 270 million smartphones, 1.05 billion Aadhaar (registrations) and 400 million internet users. Second, the proliferation of digital economy in India is going to lead to a big surge in electronic goods for services, delivery and other things.
China has raised concerns about electronics manufacturing shifting to India?
I have no comments on that. We would welcome healthy competition. It only shows that the ecosystem of electronic manufacturing under the government of Narendra Modi is attaining global attention. India’s ease of doing business is getting recognised. And we are just a phone call away. I see a great innovative spirit emerging with the spread of Digital India. Simpler instruments to take care of cyber security can also emerge from the ecosystem of electronic manufacturing.
With the US presidential elections round the corner, the debate on outsourcing has taken centre stage. Your comments.
As of now I am very satisfied that Indian IT products are present in 200 cities in 80 countries. Last year, our exports were $108 billion (Rs 7.18 lakh crore). Well I can only say Indian companies contribute substantially to the economy where they operate in terms of taxes, they help innovation, pay millions of dollars as taxes.
With so much thrust on electronics manufacturing, when can we expect India to become a net exporter of such goods?
If in one year we can establish over 40 mobile manufacturing units, then that is an indication. I see the ecosystem has started. If we can do this, surely we can do much more in coming years.
Can you tell us about electronics manufacturing in India and what the future road map is?
We consume electronics worth about $80 billion (Rs 5.32 lakh crore) and most of these are imported. [Electronics consumption is] likely to reach $400 billion (26.6 lakh crore) by 2020. Two years down the line, I am satisfied with the road map emerging. Investment in electronics manufacturing was Rs 11,000 crore when our government came to power, now it is Rs 1.24 lakh crore.
I was very keen to promote India as a manufacturing hub for mobiles because India is has about 1.03 billion mobile phones. Around 40 mobile manufacturing units have come in the past year and a half. I am very keen that India emerges as a big hub of mobile manufacturing. There is a huge market in Asia, in neighbouring countries, in Asean countries, in Gulf countries and my advice for all these companies is Make in India for India, earn benefits here and also export outside.
But has success been limited to mobile or has Make in India spread across the bouquet of electronic goods. Also some people say it’s mostly assembling. What is your take on that?
I have to highlight the fact that I have seen good progress in other fields also. LCD/LED TV manufacturing have gone from 8.7 million units in 2014-2015 to 12 million units in 2015-16, a growth of 37 per cent. The production of LED products has risen to Rs 3,590 crore in 2015-16 from Rs 2,172 crore in 2014-15, a growth of 65 per cent. For me, what is more important is that seven charger/adapter manufacturing units, five battery pack manufacturing units and one wired headset unit have come up in the past three to four months. We are also encouraging automobile manufacturing units, defence electronics and medical electronics. Therefore, the entire ecosystem from policy initiative to incentive and government support is there. The second thing that we are doing is taking care of the duty scenario. The third is the entire ecosystem of electronic innovation and human resource creation.
What could be the size of the electronics industry in the coming years?
The sky is the limit and there are two reasons: The sheer size of the Indian market with 1.25 billion people, 1.03 billion mobile phones, 270 million smartphones, 1.05 billion Aadhaar (registrations) and 400 million internet users. Second, the proliferation of digital economy in India is going to lead to a big surge in electronic goods for services, delivery and other things.
China has raised concerns about electronics manufacturing shifting to India?
I have no comments on that. We would welcome healthy competition. It only shows that the ecosystem of electronic manufacturing under the government of Narendra Modi is attaining global attention. India’s ease of doing business is getting recognised. And we are just a phone call away. I see a great innovative spirit emerging with the spread of Digital India. Simpler instruments to take care of cyber security can also emerge from the ecosystem of electronic manufacturing.
With the US presidential elections round the corner, the debate on outsourcing has taken centre stage. Your comments.
As of now I am very satisfied that Indian IT products are present in 200 cities in 80 countries. Last year, our exports were $108 billion (Rs 7.18 lakh crore). Well I can only say Indian companies contribute substantially to the economy where they operate in terms of taxes, they help innovation, pay millions of dollars as taxes.
With so much thrust on electronics manufacturing, when can we expect India to become a net exporter of such goods?
If in one year we can establish over 40 mobile manufacturing units, then that is an indication. I see the ecosystem has started. If we can do this, surely we can do much more in coming years.
