In a recent Digital India Dialogues meet held in Bengaluru, Union Minister Rajeev Chandrasekhar shared the government’s ambitious vision for India’s digital economy and electronics industry. With the goal of catalyzing the IT hardware ecosystem, the government aims to create a rapidly expanding server and IT hardware manufacturing ecosystem by 2026.
“Our ambitions are clear – a $300 billion electronics industry and a $1 trillion digital economy by 2026. The government will act as an enabler in catalyzing India’s IT hardware ecosystem that includes data centers, servers, and more,” Minister Chandrasekhar stated during the event.
To achieve these objectives, the government has introduced the PLI 2.0 scheme for IT hardware, with a budget of Rs 17,000 crore, doubling the previous year’s allocation. This scheme aims to encourage domestic manufacturing, attract investments, and promote the localization of IT hardware components and sub-assemblies.
The PLI 2.0 scheme covers a range of products, including laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. By catalyzing the domestic IT hardware manufacturing ecosystem, the government aims to create Indian champions in the industry.
Minister Chandrasekhar emphasized the government’s commitment to working closely with startups, industry players, and academia to stimulate ecosystem development and expand the presence of enterprises and startups in India. While welcoming foreign companies to establish their base in the country, the government is also providing incentives to enable industry growth and expand the EMS ecosystem.
Moreover, the minister expressed optimism about India’s potential to become part of the electronics supply chain in advanced avionics. He expects companies like Honeywell and Garmin, which already have their back office capability centers in India, to start developing advanced electronics and avionics within the country. By fostering innovation and R&D, Minister Chandrasekhar believes India can contribute to the next generation of avionics, with potential support from startups.
The PLI 2.0 scheme, spanning six years, is projected to generate a significant increase in production worth Rs 3.35 lakh crore, with an expected investment of Rs 2,430 crore. Additionally, the scheme is anticipated to create approximately 75,000 new direct job opportunities.
India’s electronics manufacturing industry has exhibited impressive growth since 2014, achieving a consistent compound annual growth rate (CAGR) of 17 percent. Having surpassed the benchmark of $105 billion in production, the industry is poised for further expansion as the government works towards its ambitious targets.
With a robust plan in place and a focus on collaboration between government, industry, and academia, India is determined to position itself as a global leader in the digital economy and electronics industry by 2026
