Electronics production in the country is expected to reach $300 billion by 2026, industry body ICEA said in a report on Monday.
The National Policy on Electronics (NPE) 2019 had set a target of achieving a turnover of $400 billion by 2025.
However, the industry will be unable to achieve the target set by NPE 2019, due to the adverse impact of the Covid-19 pandemic on the sector, the report said, adding that "the Covid-19 pandemic brought with it unforeseen and unprecedented challenges."
"The NPE 2019 targets for electronics production in 2025-26 at $300 billion appears to be more realistic considering the disruption on account of Covid-19 in the past 18 months which has been aggravated with the new variants of the Covid-19 virus such as Omicron," the report said.
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The India Cellular and Electronics Association (ICEA) Chairman Pankaj Mohindroo while sharing the details of the report said that the reduced target still aims for a 400 per cent increase from the current level, which will require significant and persistent policy initiatives and efforts to create a conducive electronics manufacturing ecosystem.
He said that the government should not make any changes in the tax tariff without consultation with the industry.
Mohindroo said that there is a need to encourage domestic champions.
The report estimates demand for electronic products in India may stand at approximately $180 billion by 2025-26.
"If India is able to achieve the manufacturing target of $300 billion for electronics, the domestic market demand may be met in full by such manufacturing. This necessitates that $120 billion worth of electronic products would be required to be exported to the global market," the report said.
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