The Electronic Industries Association of India (Elcina), representing the country’s electronics manufacturing sector, has called for a ₹72,500 crore (USD 8.57 billion) package to increase domestic production of electronic components and reduce reliance on imports. Elcina estimates that by 2030, the electronics sector’s demand-supply gap for components will widen to USD 248 billion (₹21 lakh crore), given a projected electronics production value of USD 500 billion.
This shortfall is expected to be largely met through imports unless significant measures are implemented. The proposed package includes USD 2.14 billion for capital expenditure to encourage manufacturing expansion and USD 6.43 billion under a production-linked incentive (PLI) scheme to enhance domestic output.
“Electronic components typically yield lower returns compared to finished goods, with production output reaching only about three times the investment,” said Elcina Secretary General Rajoo Goel. “This makes businesses hesitant to invest due to high costs and long timelines. Support from the government is crucial to bridge this gap.”
The industry body believes that government assistance could reduce the import deficit to USD 102 billion (₹8.63 lakh crore) by 2030. It has identified key components, such as printed circuit boards, discrete semiconductors, metallic parts, and active components, that require focused support.
Currently, these non-semiconductor components account for 40% of the total value of electronics products, while semiconductors represent an additional 20%.
Elcina projects that government backing could attract USD 36 billion in additional investments and generate 50 lakh jobs by 2030. Without intervention, domestic production of non-semiconductor components is expected to rise from USD 13 billion in 2022 to USD 37 billion by 2030, leaving a significant deficit. While India’s semiconductor sector has seen progress under the India Semiconductor Program, Elcina emphasizes the need for similar initiatives in the non-semiconductor segment to strengthen the country’s electronics manufacturing ecosystem.
Established in 1967, ELCINA became India’s first industry association dedicated to supporting the electronics hardware sector when the country’s electronics industry was in its early stages. Over the years, ELCINA has evolved into a dynamic platform for electronics and IT manufacturers, facilitating dialogue and collaboration.
The association actively engages with the government, providing policy recommendations and addressing industry-related challenges. Additionally, ELCINA fosters partnerships with technical institutions and business organizations both domestically and internationally, promoting business growth and sharing updates on technological advancements. With the advent of liberalization, ELCINA has expanded its focus to offer professional and value-added services, catering to the evolving needs of the electronics industry.
