India has the potential to scale up its cumulative laptop and tablet manufacturing capacity to USD 100 billion by 2025 through policy interventions, mobile devices industry body ICEA said.
Mohindroo said the government's production linked incentives scheme has given a boost to electronics sector and further addressing cost disability can boost production of laptops and tablets in the country.
India has the potential to scale up its cumulative laptop and tablet manufacturing capacity to USD 100 billion by 2025 through policy interventions, mobile devices industry body ICEA said on Wednesday. Scaling up laptop and tablet PC manufacturing can take share of India in global market to 26 per cent from 1 per cent at present. Besides, it will generate 5 lakh new jobs and lead to a cumulative inflow of foreign exchange to the tune of USD 75 billion and investment of over USD 1 billion by 2025, ICEA said in a report on opportunity for making laptops and tablets in the country.
India Cellular and Electronics Association (ICEA) Chairman Pankaj Mohindroo said the country’s electronic market has reached USD 65 billion with large contributions from mobile phones. “In laptop and tablets, we are still dependent on imports, and 87 per cent of it is imported from China. The laptop market is not a very large market in India.
Tablets is currently a small market. After mobile phones, these are the biggest IT products. “By making laptops and tablets in India for the world, and obtaining a sizable share of the global market will give us a manufacturing value of USD 100 billion by 2025,” Mohindroo said. The National Policy on Electronics 2019 (NPE) envisages electronic manufacturing turnover of USD 400 billion by 2025, out of which USD 190 billion is expected to come from the mobile phone segment.
According to ICEA, whose members include Apple, Xiaomi, Motorola, Nokia, Foxconn, Flextronics, Lava, Vivo, among others, the domestic market will account for around USD 170 billion by 2025, and there is a need to look at export markets for rest of USD 230 billion to meet the target of NPE 2019. The government has set a target to achieve USD 110 billion of electronics manufacturing from mobile phone production for exports. According to ICEA, the laptop and tablet market in India is very small and most of the manufacturing can be done for exporting them to markets in the US, Europe, among others. Mohindroo said the government’s production linked incentives scheme has given a boost to electronics sector and further addressing cost disability can boost production of laptops and tablets in the country.
“Manufacturing of tablets presents a huge opportunity for Indian companies who are currently producing mobile phones,” he said. Manufacturers in India suffer from various disabilities like high cost of power, tax, and ease of doing business which renders India almost 10-20 per cent less competitive than Vietnam and China, respectively, the report said. “India must address these issues in the long run.
Meanwhile, the government should endeavour to offset these disabilities by providing incentives that are WTO-compliant, easy to implement and help India take off from the export runway,” it said. “A PLI scheme like that for the mobile phone manufacturing sector may aid in substantially improving India’s competitiveness,” the report added.