The industry is optimistic that the new government will support the localization of component production and help homegrown brands excel on the global stage.
In his inaugural address following the General Elections, where the BJP fell short of a majority but secured the halfway mark with its allies, Narendra Modi expressed confidence in securing a third consecutive term. Remaining true to his pre-election promises, Modi reiterated his commitment to advancing the agenda established during the past decade. The NDA government has introduced several production-linked incentive (PLI) schemes for mobile phones, IT hardware, and other sectors to realize its vision of a self-reliant India. In his third term, Modi aims to strengthen production in the electronics and semiconductor industries. During his address, Modi stated, “We made India the second-largest smartphone manufacturer. Now, we will increase work in semiconductors and electronics production sectors.”
The industry is encouraged by this sentiment.
Amit Khatri, Co-Founder of the homegrown wearable company Noise, commented, “We trust that the new administration will significantly advance India’s electronic manufacturing sector. Guided by the vision of Aatmanirbhar Bharat, we also hope for government support in localizing component production and creating an environment where homegrown brands can lead India on the global stage. We are optimistic about the future and are ready to collaborate with the new government to make India a global leader in the smart wearable industry, driving economic growth, creating jobs, and delivering innovative products that enhance the lives of millions.”
While India has made strides in smartphone manufacturing and with laptops and PCs also being produced locally, the wearable and TV industries are also expecting a significant push from the new government. In recent years, many Indian companies have already begun manufacturing and assembling their products locally in response to the Make in India initiative.
Varun Gupta, Co-Founder of Boult, noted, “The robust growth of India’s manufacturing sector, serving as the primary driver amidst a global slowdown, underscores the nation’s resilience with over 8.2% GDP growth. Particularly, the electronics sector is poised to transcend mere import substitution and evolve into a formidable export hub. The PLI scheme tailored for hearables and wearables is poised to play a pivotal role in realizing the government’s ambitious export targets, providing a substantial boost to the sector’s competitiveness and contribution to the global market.”
Continued adherence to policies and a dedicated focus on infrastructure initiatives is seen as crucial for the industry.
Avneet Singh Marwah, CEO of SPPL, a contract manufacturer for TVs, washing machines, and ACs in India, stated, “Our industry thrives on stability and conducive policies. We look forward to a government committed to fostering innovation, streamlining regulations, and investing in infrastructure. Expedited project completions and a reduction in GST on televisions and air conditioners from 28% to 18% will further propel our sector’s growth, enabling us to contribute significantly to India’s economic progress. Together, with the right governmental support, we aim to drive not just our company’s success but also contribute significantly to India’s journey towards becoming a global electronics hub.”