New Delhi. Niti Aayog has recommended giving incentives to increase the production of electronic components domestically. It has also asked to bring an innovation scheme to encourage the designing of mobile phones and other electronic products and to develop 10 clusters for large-scale expansion of production capacity.

On Thursday, NITI Aayog released a report on achieving the target of taking the production of electronics manufacturing to $ 500 billion by the year 2030. Currently, electronics production in India is worth $ 100 billion while globally its business is $ 4.3 trillion.

Global market worth $1.8 trillion

The global business of electronics components is worth $1.8 trillion, while India's share in it is less than one percent. By the year 2030, the target has been set to manufacture electronics final products worth $350 billion and components worth $150 billion.

Since components are not manufactured domestically, components have to be imported on a large scale for the manufacture of mobile phones and other electronic products. This is the reason that despite being the second largest exporter of mobile phones in the world, our import of electronic items is more than our export.

Why is there a need to introduce an incentive scheme?

The cost of manufacturing electronic components in India is 14-18 percent higher than in other countries. In such a situation, there is a need to bring incentive schemes for component manufacturers. The commission has also recommended capital assistance for setting up units related to the manufacturing of specific types of electronic components. In this sector, India competes with countries like China, Vietnam, Taiwan, Malaysia.