Report suggests India has potential to export Rs 8 lakh cr worth motherboards between 2021-26

India has potential to export motherboards, technically referred to as printed circuit board meeting(PCBA), value as much as Rs eight lakh crore between 2021-26, cell gadgets business physique ICEA and EY stated in a joint report.

However, within the absence of presidency incentives and subsidies the export potential might be round Rs 29,500 crore throughout the 5 12 months interval, the report stated.

India Cellular & Electronics Association (ICEA) Chairman Pankaj Mohindroo stated the federal government is required to understand the cumulative export potential of Rs eight lakh crore by 2026.

“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 USD 109 billion (over Rs 8 lakh crore). However, if no support is offered, the export is estimated to dwindle to USD 4 billion (around Rs 29,500 crore),” the report stated.

PCBA varieties the bottom of digital merchandise.

Mohindroo stated the present dimension of PCBA business in India is round Rs 2 lakh crore and it’s anticipated to succeed in Rs 6.four lakh crore throughout 2021-26.

The National Policy on Electronics 2019 (NPE) envisages digital manufacturing turnover of USD 400 billion (Rs 26 lakh crore on the time coverage was authorised) by 2025, out of which USD 190 billion (Rs 13 lakh crore) is anticipated to return from the cell phone section.

According to ICEA, IT {hardware} — laptop computer and pill manufacturing — has potential to contribute over Rs 7 lakh crore to the NPE goal and PCBA can add one other about Rs eight lakh crore.

“We have requested for separate production linked incentives for PCBA. The consumption of PCBA in India will be majorly driven by mobile devices,” Mohindroo stated.

He stated there are quite a lot of value disabilities which India has to deal with to compete with different Asian international locations like China, Vietnam and so forth.

“Standalone PCBA exports from India face cost disabilities against well-established manufacturing hubs, with large manufacturing capacities, such as China and Vietnam. In addition, China offers various incentives for R&D activities, tax benefits on exported goods, policies to promote an export culture, significant investments across the value chain and technology transfer from global players,” the report stated.

India’s exports of standalone PCBAs for cellphones have been USD 0.15 billion (Rs 1,100 crore) in 2019-20 and are anticipated to be USD 0.30 billion (Rs 2,200 crore) in 2020-21.

“For other electronic products, standalone PCBA exports are estimated to begin only from 2022-23 as manufacturing capacities increase in the country,” the report stated.