New Delhi, Dec 3 (IANS) India has the potential of becoming a $109 billion global manufacturing and export hub for Printed Circuit Board Assembly (PCBA) alongside mobile phone manufacturing, said a new report on Thursday.
PCBA manufacturing and exports will fast forward the components industry, build ownership of core technology and reduce dependency on China, said the joint report by industry body India Cellular and Electronics Association (ICEA) and global consultancy major EY.
“PCBA exports can be the next great opportunity for India’s electronics exports after mobile phones and appropriate incentives are being recommended in line with the PLI (production-linked incentive) scheme announced for mobile phones,” Pankaj Mohindroo, Chairman, ICEA, said on launch of the report.
The report said that India’s dream of becoming the global electronics manufacturing hub cannot be realised unless the government provides support to mitigate the disabilities faced by the PCBA industry.
If support of 4-6 per cent on exports of PCBAs can be provided, by 2025-26, the cumulative PCBA export for India can be about $109 billion, said the report titled “Atmanirbhar Bharat: Making India the global hub for Printed Circuit Board Assembly (PCBA)”.
However, if no support is offered, the export is estimated to dwindle to a $4 billion, it added.
Currently, the government provides 2 per cent benefit on Free on Board (FOB) value of exports under the Merchandise Exports from India (MEIS) Scheme for specified products, which includes PCBA.
The scheme will end by December 31.
The report said that as majority of mobile phone manufacturing in India comprises assembly operations at large, targeting the development of components ecosystem is a logical step to augment the manufacturing capabilities in the country.
“The right policy impetus on PCBA can go a long way in transforming India from mobile phone assembly to full-fledged electronics manufacturing hub,” said Prashant Singhal, Emerging Markets TMT Leader, EY.
“By extending enabling policy incentives to PCBA manufacturers, India can strengthen its position in the global supply chain and fast-forward the ‘Atmanirbhar Bharat’ vision with $109 billion export potential in the next five years.”