According to India Cellular and Electronics Association (ICEA), exports of electronics goods by India reached an all-time high of Rs 8,806 crore in December 2020. By value, mobile phones accounted for most of these exports at 35 percent. The value of the export of mobile phones by India was Rs 3,061 crore. As compared to December 2019, this is 50 percent higher.
As per ICEA, the industry is overcoming unparalleled challenges brought by the pandemic and is on the path to repositioning the momentum envisioned in the National Policy on Electronics 2019 (NPE 2019).
Pankaj Mohindroo, chairman of ICEA, stated that supported by the PLI scheme, industry has made substantial investments of over Rs 2,000 crore during the COVID period.
He further added that in spite of the pandemic and the total washout of production for 45 days, electronic goods exports for the current year have crossed the Rs 50,000 crore-mark.
During the pandemic, the mobile handset industry has catered to the domestic demand. Apart from this, it exported mobile phones of over Rs 14,000 crore till December 2020. Prior to the union budget this year, the ICEA had written to the government, asking for RoDTEP to be introduced for the sector.
In this year's union budget, the government also raised customs duties on certain components and ICEA recommended their reversal. For the time being, promoting electronics exports is high on the government agenda. For this, last year, the Union government announced its production-linked incentive (PLI) scheme.
For the next five years, the scheme offers 4-6 per cent cash incentives on incremental sale of mobile phones manufactured in India. The initial firms given approval as apart of the mobile phones PLI scheme are likely to manufacture products worth Rs 10.5 trillion in the next five years. Of this, almost 60 percent will be exported.
Of late, India also extended the PLI scheme to IT products. This is likely to add Rs 2.45 trillion to the country’s electronics exports in the next four years.
(Edited by : Jomy)
First Published: IST