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Ashwini Vaishnaw
Union Minister for Electronics and IT, Railways, and Information & Broadcasting Ashwini Vaishnaw said that India is building its electronics manufacturing capabilities.
India to reduce reliance on China in electronics manufacturing
According to the Minister, within the next five years, the country is on track to achieve a value addition of 38%, comparable to China’s.
The Union Minister shared that India is strengthening its domestic electronics manufacturing capabilities to reduce its reliance on China.
During an ET roundtable, Vaishnaw remarked that India is developing its electronics ecosystem in a “very methodical and sustained way.”
Currently, the nation has surpassed the 20% value addition mark within six to seven years, and targets to cross 30% in the next two to three years.
The Minister remarked on recent reports that Apple supplier Foxconn has recalled over 300 Chinese engineers from its iPhone production facilities in India.
According to a Bloomberg report quoted by ET, the move, allegedly driven by the Chinese government to restrict talent outflow, may impact assembly line efficiency and delay the training of local Indian workers.
Vaishnaw, however, said India is focused on “de-risking” by developing local skills and supply chains. “Which is what we are doing,” he said.
India’s electronics sector, valued at around $145 billion, is growing at a compound annual growth rate (CAGR) of 20%.
The PM Modi government is backing this expansion through key initiatives such as the Rs 76,000 crore India Semiconductor Mission and the Rs 23,000 crore components incentive programme launched earlier this year.
Vaishnaw said India must build capabilities in “every machine, every component” to withstand geopolitical uncertainties. “We must go into every part of it and start manufacturing them,” he added.