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Govt notifies sez reforms

Govt notifies sez reforms

The government has introduced ground-breaking reforms to the Special Economic Zones (SEZ) regulations, specifically targeting the unique demands of the semiconductor and electronics component manufacturing sectors in India. Recognising that manufacturing in these sectors is capital-intensive, reliant on imports, and subject to lengthy periods before profitability, the rule changes aim to stimulate pioneering investments and boost manufacturing in these high-technology sectors.

Following amendments to Rule 5 of the SEZ Rules, 2006, an SEZ established solely for the manufacturing of semiconductors or electronic components will now require a minimum contiguous land area of just 10 hectares, a significant reduction from the previous requirement of 50 hectares. Further, changes to Rule 7 of the SEZ Rules, 2006, empower the Board of Approval for SEZs to waive the condition that SEZ land must be free of encumbrances in cases where it is mortgaged or leased to the Central or State Government or their authorised agencies.

The amended Rule 53 now allows the value of goods received and supplied free of charge to be included in Net Foreign Exchange (NFE) calculations and assessed using relevant customs valuation rules. Moreover, amendments to Rule 18 of the SEZ Rules now permit SEZ units in the semiconductor and electronics component manufacturing sectors to supply domestically into the Domestic Tariff Area after paying the applicable duties. These key amendments aim to make SEZs more accessible and attractive for investment in these critical sectors.
Impact On Businesses
These SEZ reforms are poised to have a substantial impact on businesses operating within the semiconductor and electronics manufacturing sectors in India. The reduction in minimum land requirements will particularly benefit small and medium-sized enterprises (SMEs), allowing them to establish operations within SEZs without the burden of acquiring vast tracts of land. This increased accessibility could foster greater participation from domestic players, boosting competition and innovation within the industry.

The relaxation of encumbrance norms provides much-needed flexibility for companies seeking to set up manufacturing units. Previously, the requirement for encumbrance-free land presented a significant hurdle, especially for businesses with existing land holdings that may have been mortgaged or leased. By allowing the Board of Approval to waive this condition in certain cases, the reforms will unlock opportunities for companies to leverage their existing assets and expedite the establishment of their SEZ operations.

Furthermore, the inclusion of free-of-cost goods in NFE calculations offers a more realistic assessment of the economic contribution of SEZ units. This change acknowledges the prevalence of such arrangements in the semiconductor and electronics manufacturing industries, where components are often provided by parent companies or international partners. By accounting for these goods, the reforms will provide a more accurate picture of the net foreign exchange earned by SEZ units, potentially leading to more favourable policy decisions and incentives.

The ability for SEZ units to supply domestically into the Domestic Tariff Area after paying applicable duties presents a significant opportunity for businesses to tap into the growing Indian market. This will enable them to diversify their revenue streams, reduce their reliance on exports, and cater to the increasing demand for electronics and semiconductor products within the country. This provision could also incentivise foreign companies to establish manufacturing facilities in India, with the aim of serving both domestic and international markets.
Simplified Procedures
The recent reforms to the SEZ regulations also encompass simplified procedures, designed to reduce bureaucratic hurdles and streamline operations for businesses. The Department of Commerce has implemented measures to expedite the approval process for new SEZ units and facilitate smoother customs clearances for goods moving in and out of these zones. These streamlined procedures are expected to significantly reduce the time and cost associated with setting up and operating within SEZs, making them more attractive to investors.

One key aspect of the simplified procedures is the introduction of a single-window clearance system for various approvals and permits required by SEZ units. This system will consolidate multiple application processes into a single online platform, reducing the need for businesses to interact with numerous government agencies. This will not only save time and resources but also enhance transparency and accountability in the approval process.

Furthermore, the government is committed to reducing the compliance burden on SEZ units by simplifying reporting requirements and adopting risk-based inspections. This means that businesses with a proven track record of compliance will be subject to fewer inspections and less stringent reporting obligations. This will allow them to focus on their core business activities, rather than spending excessive time on administrative tasks. These simplified procedures are expected to contribute significantly to the ease of doing business within SEZs, fostering a more conducive environment for investment and growth in the semiconductor and electronics manufacturing sectors in India.
Future Outlook
Looking ahead, these SEZ reforms are expected to catalyse a new era of growth and innovation within India’s semiconductor and electronics manufacturing sectors. The government envisions India emerging as a global hub for high-tech manufacturing, attracting significant foreign direct investment (FDI) and creating numerous high-skilled job opportunities. The recent policy changes are a crucial step towards realising this ambitious vision.

Industry analysts predict that the reduced land requirements and relaxed encumbrance norms will lead to a surge in the number of SEZ applications, particularly from SMEs and domestic manufacturers. This increased participation could foster a more competitive and dynamic ecosystem, driving innovation and technological advancements within the semiconductor and electronics industries. The reforms are also expected to encourage existing SEZ units to expand their operations and invest in new technologies.

Furthermore, the government plans to continue refining the SEZ policy framework based on industry feedback and evolving global trends. This includes exploring further simplifications to procedures, providing targeted incentives for research and development, and fostering collaborations between SEZ units and academic institutions. By remaining agile and responsive to the needs of the industry, India aims to solidify its position as a leading destination for semiconductor and electronics manufacturing, attracting both domestic and international investment in the years to come. The success of these SEZ reforms is crucial for India’s economic growth and its ambition to become a self-reliant manufacturing powerhouse.

June 10, 2025
Samsung Electronics Workers’ Strike Enters Fourth Week, Posing Challenge to India’s Manufacturing Hub Ambitions

Samsung Electronics Workers’ Strike Enters Fourth Week, Posing Challenge to India’s Manufacturing Hub Ambitions

India’s efforts to position itself as a major manufacturing hub, an alternative to China, are facing a significant setback as over 1,000 workers at Samsung Electronics’ home appliances plant in Tamil Nadu continue their strike, now entering its fourth week. The workers have been protesting since September 9, demanding higher wages, union recognition, and adherence to an eight-hour workday. The factory, located in Chennai, accounts for nearly 20% of Samsung’s annual revenue in India, which stood at $12 billion for 2022-23.
On October 3, local police detained 912 workers and union members during a street protest. They were released later, but the authorities have filed cases against them under eight different sections. The strike is primarily led by the Centre of Indian Trade Unions (CITU), with its state president, Soundarrajan, criticizing the Tamil Nadu government for failing to support the workers despite pre-election promises.
Samsung, in a statement, emphasized that the average salary of full-time workers at the plant is nearly double that of similar workers in the region. It also indicated a willingness to engage in discussions to resolve the dispute. However, the company has labeled the strike illegal and taken legal action against CITU members, warning workers that they risk losing their jobs if they continue the protest.
Workers’ Demands and Union Recognition
The striking workers, who earn an average of Rs 25,000 ($300) per month, are demanding a wage increase to Rs 36,000 over the next three years. Central to their demands is the recognition of the newly formed Samsung India Labour Welfare Union (SILWU), which workers believe is essential for negotiating better wages and working conditions.
CITU has joined the protests in solidarity, with union leaders voicing frustration over delays in recognizing SILWU. Police actions, including the detention of 120 employees and a CITU district secretary on September 16, have further escalated tensions. There are concerns that protests could expand across the state if demands are not met.
Impact on Tamil Nadu’s Investment Drive
The unrest at Samsung’s Chennai plant could undermine Tamil Nadu’s image as a preferred investment destination. The state has been working to attract high-profile investments, with recent developments such as Ford Motor’s plan to re-enter the Indian market by repurposing its Chennai plant for exports. Additionally, Tata Motors recently held a groundbreaking ceremony for a new manufacturing facility in Ranipet, set to produce next-generation vehicles for both Tata and Jaguar Land Rover (JLR). Tata Motors plans to invest Rs 9,000 crore in this facility, which is expected to have an annual production capacity of over 250,000 vehicles.
However, disruptions at other key facilities, like Tata Electronics’ plant in Hosur, where a fire has temporarily halted production, further highlight the challenges facing Tamil Nadu’s industrial ambitions.
Potential Long-term Consequences
The ongoing strike at Samsung’s Chennai plant underscores broader concerns about labor relations and industrial unrest in India, especially at a time when the country is trying to establish itself as a global manufacturing hub. If the dispute continues, it could not only affect Samsung’s operations but also deter potential investors who are considering Tamil Nadu as a destination for setting up manufacturing units.
The outcome of the strike will likely have broader implications for India’s manufacturing landscape, particularly as the government seeks to attract foreign investment and strengthen its position as a global production powerhouse.

October 4, 2024
Apple’s AI in Limbo: How the EU’s Digital Markets Act Throws a Wrench in Innovation
Apple’s AI Rollout Stalled in Europe: The EU’s Digital Markets Act Throws a Wrench in the Works
Apple’s grand plans for rolling out its latest artificial intelligence (AI) features in Europe have been thrown into disarray by the European Union’s (EU) Digital Markets Act (DMA). This act, designed to promote a more competitive digital marketplace, has unfortunately collided with Apple’s way of doing things, particularly regarding user privacy and app distribution, creating a frustrating impasse.
Hold Up on the AI Train
The centerpiece of Apple’s AI ambitions, a project mysteriously named “Apple Intelligence,” has been placed on hold for all its European users. While the exact features of this offering remain under wraps, it likely encompasses a range of AI-powered services intended to seamlessly integrate within the Apple ecosystem.
Adding to the woes, features like effortless iPhone mirroring and enhanced screen sharing capabilities via SharePlay are also stuck in limbo across the EU.
Interoperability Woes: Security Concerns vs. Openness
The core of the problem boils down to the DMA’s push for interoperability. These provisions aim to dismantle the walled gardens created by tech giants like Apple, potentially forcing them to:
Allow users to download applications from third-party app stores outside the tightly controlled App Store.
Permit alternative payment methods within apps, effectively bypassing Apple’s App Store commission fees.
Apple, however, is deeply concerned that such interoperability mandates could come at the cost of user privacy and security. They argue that loosening control over app distribution might expose users to security vulnerabilities by allowing potentially unvetted apps onto iPhones.
Finding Common Ground: A Delicate Dance
Apple maintains its unwavering commitment to user safety and is actively seeking collaboration with the European Commission to find a solution that satisfies both parties. Ideally, they hope to introduce their new features while simultaneously upholding the high standards of user privacy and security they strive for.
The Potential Impact: A Double-Edged Sword
This delay in rolling out AI features for the European market has the potential to cause a two-pronged problem:
European users might miss out on the convenience and innovative experiences promised by these new AI functionalities.
Apple might be forced to significantly alter its AI implementation strategy to comply with the DMA regulations.
The Future Unfolds: A Precedent in the Making
The outcome of Apple’s discussions with the EU Commission will not only determine the fate of AI features and app distribution for Apple devices in Europe, but it could also set a crucial precedent. How other tech giants navigate the regulations laid out by the DMA will be closely watched, potentially shaping the entire digital landscape within the European region.
Stay Tuned for the Next Chapter
This story is far from over. We’ll be keeping a close eye on developments, with The Indian Express and other tech news outlets serving as our guides, to see how Apple and the EU Commission eventually resolve this situation. Their resolution could very well define the future path of AI integration within smartphones and set new standards for user privacy.
July 3, 2024
Nvidia Stock Soars: AI Powerhouse Faces New Competition and Evolving Regulations
Nvidia Stock Soars: AI Powerhouse Faces New Competition and Evolving Regulations

Nvidia’s stock price has tripled in just a year, leaving investors pondering whether to hold or sell. Nvidia’s story is one of innovation and adaptation, evolving from a pioneer in computer graphics to a leader in artificial intelligence.
Founded in 1993 by a trio of electrical engineers with a vision to bring 3D graphics to the mainstream. They entered the market with the RIVA series of graphics processors, targeting the burgeoning PC gaming market.
Nvidia, the graphics processing unit (GPU) giant and a leader in artificial intelligence (AI) technology, has been making headlines for all the right reasons lately. Their stock price has skyrocketed, tripling in value within the past year. This surge reflects investor confidence in the company’s future, but it also raises questions about whether it’s time to buy, sell, or hold.
However, Nvidia’s journey isn’t without its challenges. The tech landscape is constantly shifting, and new developments are emerging that could impact their market position. One key development is the rumored collaboration between Apple and Meta on AI technology. If this partnership comes to fruition, it could create a formidable competitor for Nvidia in the AI hardware space.
Beyond competition, Nvidia, along with other AI leaders, needs to navigate the evolving regulatory landscape. The European Union’s Chat Control Law, for example, highlights growing concerns around privacy and the potential misuse of AI. Nvidia will need to demonstrate its commitment to responsible AI development and ensure its technology adheres to these evolving regulations.
Nvidia’s Strengths:
Market Leader: Nvidia is currently the dominant player in the AI hardware market, boasting powerful GPUs specifically designed for AI applications.
Innovation: They have a proven track record of innovation, constantly pushing the boundaries of graphics and AI technology.
Diversification: Their presence extends beyond gaming and AI, with applications in professional computing, autonomous vehicles, and the potential metaverse.
Challenges and Opportunities:
Competition: Potential collaboration between Apple and Meta could pose a serious threat to their AI market dominance.
Regulations: Navigating evolving AI regulations will be crucial for continued growth and responsible development.
Market Fluctuations: The current stock price surge might be an opportune moment for investors to cash out, but it could also indicate continued growth potential.
Looking Ahead:
Nvidia’s future hinges on its ability to adapt and maintain its edge in a dynamic market. Continued innovation, strategic partnerships, and a commitment to responsible AI development will be key factors in their success. Investors, meanwhile, will be closely watching how Nvidia navigates these challenges and translates its technological prowess into long-term financial gains.
July 1, 2024
India’s Electronic Manufacturing May Reach USD 500 Billion by 2030: CII Report

India’s Electronic Manufacturing May Reach USD 500 Billion by 2030: CII Report

A report by the Confederation of Indian Industry (CII) emphasizes the need for critical actions to transform India’s electronic sector ecosystem from “import-dependent assembly-led manufacturing” to “component-level value-added manufacturing.”
Key Findings
According to the report, in 2023, the demand for components and sub-assemblies reached USD 45.5 billion, supporting USD 102 billion worth of electronics production. This demand is projected to surge to USD 240 billion, supporting USD 500 billion worth of electronics production by 2030.
Growth Projections
Priority components and sub-assemblies, including Printed Circuit Board Assemblies (PCBAs), are expected to grow at a robust Compounded Annual Growth Rate (CAGR) of 30%, reaching USD 139 billion by 2030.
Recommendations for Government Action
The report recommends several key actions for the government, including:
– Introducing a fiscal support scheme, SPECS 2.0 (Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors).
– Rationalizing import tariffs on components like camera modules.
– Signing Free Trade Agreements (FTAs) with European and African countries.
Priority Components
The report identifies five priority components and sub-assemblies as high priority for India: lithium-ion batteries, camera modules, mechanicals, displays, and PCBs. These components accounted for 43% of the components demand in 2022 and are expected to grow to USD 51.6 billion by 2030.
Current Challenges
These components are either minimally produced in India or are heavily import-dependent. Sustaining this trend of importing priority components is not viable. The PCBA segment, which relies heavily on imports, is expected to grow by 30%, creating a demand of around USD 87.46 billion by 2030.
However, India faces several challenges, including:
– Manufacturing cost disadvantages compared to economies like China, Vietnam, and Mexico (10-20%).
– Lack of large domestic manufacturing corporations.
– Absence of a domestic design ecosystem for Indian companies.
– Insufficient raw materials ecosystem.
Economic Benefits
The report suggests that policy support will yield various economic benefits, such as:
– Job creation for approximately 280,000 people by 2026.
– Increase in domestic value addition from current levels.
– Reduction in import dependency.
– Increase in GDP.
These measures will help firmly position India as a global hub for electronics manufacturing by 2030.

June 24, 2024
India’s Electronic Manufacturing Set to Double to $250 Billion in Five Years: Report

India’s Electronic Manufacturing Set to Double to $250 Billion in Five Years

India’s electronic manufacturing sector is poised for significant growth, with projections indicating it will double to around $250 billion in the next five years, according to a report from The Economic Times. This growth would elevate the sector from its current value of $125-130 billion in electronic exports.
To combat unemployment, the government is targeting job creation in the electronic manufacturing sector, aiming to double the current workforce of 2.5 million to around 5 million in the same timeframe.
“Our focus remains on providing services to digital technology and expanding large-scale electronics manufacturing. These targets will only accelerate,” stated Ashwini Vaishnaw, Minister for Electronics and Information Technology.
The report highlights India’s shift from import substitution to becoming self-reliant (Aatmanirbhar) and an export-led manufacturer, especially in segments like mobile phones. The country is also working towards self-reliance in laptop manufacturing.
The Indian government has earmarked Rs 760 billion for electronic manufacturing through various incentive schemes. Despite this, India’s per capita electronic consumption remains at one-fourth of the global average.
Currently, a significant portion of India’s electronic imports come from China (44%) and Hong Kong (16%). On the export front, mobile phones and Electronic Control Units (ECUs) dominate, with the United States and the UAE being the largest export destinations.
Experts note that India’s electronic manufacturing sector is undergoing a transformation, strengthening the country’s position as a global electronics manufacturing hub.
To further this goal, the government has launched several initiatives, including the Production Linked Incentive (PLI) Scheme for large-scale electronics manufacturing, PLI for IT hardware, the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and the Modified Electronics Manufacturing Clusters Scheme (EMC 2.0).
Additionally, the government has introduced the Semicon India Program with a $10 billion incentive outlay, aiming to develop a sustainable semiconductor and display ecosystem, further establishing India as a global hub for semiconductor and display manufacturing.

June 17, 2024
Leading Handset Body Urges New Government for Robust Policy to Quadruple Electronics Sector Output in 5 Years

Leading Handset Body Urges New Government for Robust Policy to Quadruple Electronics Sector Output in 5 Years

The Indian Cellular and Electronics Association (ICEA), representing major players like Apple, Foxconn, Dixon, Xiaomi, Oppo, Vivo, and others, emphasizes that the new government should focus on establishing a robust and predictable policy framework. This framework should incentivize domestic manufacturing, attract global investments, and scale up India’s electronics manufacturing sector to integrate with global value chains (GVCs).
“To make India a significant player in the global value chain (GVC) in the electronics sector, a mission-mode approach with clear goals and timelines is crucial. Our target to quadruple the sector’s output in the next five years requires coordinated efforts across multiple ministries and continuous engagement with industry leaders,” said Pankaj Mohindroo, chairman of ICEA.
ICEA stresses the importance of building Indian Champion companies. Mohindroo highlighted the necessity of a predictable regulatory environment to foster innovation and growth in the electronics sector. “Creating a robust policy framework that incentivizes domestic manufacturing and attracts global investments is essential. The new administration needs comprehensive reforms to make India more competitive with countries like Vietnam and China, boosting our manufacturing and export capabilities.”
Mohindroo urged the new government to prioritize scaling up India’s electronics manufacturing sector to align with GVCs. This involves enhancing competitiveness by improving infrastructure, streamlining regulatory processes, and attracting foreign direct investment.
“Sustainable growth and employment opportunities require a collaborative approach between industry stakeholders and policymakers. GVCs should be the highest priority since 90% of global electronics trade is with them. We need to make our nation the best location for GVCs to do business,” he added.
Introducing virtual GVC trade clusters could streamline manufacturing processes, attract more investments, and enhance export potential. “An appropriate PLI for components, sub-assemblies, wearables, and hearables will drive domestic value addition and attract new investments. Comprehensive reforms are needed to make India more competitive with countries like Vietnam and China,” Mohindroo stated.
Currently, India accounts for only 3-4 percent of global electronics manufacturing, despite having a large domestic market. Over the past decade, electronic components manufacturing in India grew at a 13 percent CAGR, trailing the overall electronic manufacturing industry growth of 19 percent CAGR.
The Indian electronics manufacturing industry witnessed a significant four-fold increase from $25 billion in FY13 to $100 billion in FY23, driven by the aim to reduce dependence on imports of finished goods. This translates to a 19 percent CAGR over the past decade, equivalent to 78 percent of the Indian electronics market. The Government of India (GOI) has also set an ambitious target for the industry to reach $300 billion by FY26.

June 7, 2024
Industry Anticipates Stronger Emphasis on Electronics Manufacturing from New Government

Industry Anticipates Stronger Emphasis on Electronics Manufacturing from New Government

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.”

June 6, 2024
Pharma and Electronics Manufacturing to Receive Boost in Modi 3.0

Pharma and Electronics Manufacturing to Receive Boost in Modi 3.0 Era

With the BJP anticipated to secure a significant portion of seats in UP, Gujarat, Maharashtra, Telangana, and Himachal Pradesh, industry leaders foresee a continued emphasis on local manufacturing. These states serve as major manufacturing hubs for Active Pharmaceutical Ingredients (APIs) and electronic goods.
As the exit poll results indicate a clear victory for Prime Minister Narendra Modi-led BJP government at the center, stakeholders from sectors like pharmaceuticals, medical devices, and electronics manufacturing anticipate a substantial push for local production.
According to the India Today-Axis My India exit poll, the BJP is expected to sweep all seats in Gujarat and Himachal Pradesh, as well as over 60 percent and 70 percent of Lok Sabha seats in Maharashtra and Telangana, respectively. These states play a pivotal role as manufacturing hubs for pharmaceuticals and medical devices. Additionally, the BJP is predicted to secure over 85 percent of seats in Uttar Pradesh and Andhra Pradesh, two states along with Telangana that are crucial for electronics manufacturing in the country.
Boost for Pharma:
A robust performance is anticipated by the BJP-led National Democratic Alliance (NDA) in key states, driven by a manifesto emphasizing the manufacturing of Active Pharmaceutical Ingredients (APIs) and advancing research. Raj Prakash Vyas, President-Corporate Affairs at Cadila Pharmaceuticals, highlighted potential benefits such as the expansion of PLI schemes to encourage domestic manufacturing and stringent quality control measures to combat spurious drugs.
Vyas proposed the establishment of an Innovation Task Force (ITF) dedicated to pharmaceuticals, comprising experts from various fields, to accelerate the development and adoption of innovative solutions. Yogesh Mudras, Managing Director at Informa Markets, noted India’s leadership in the pharmaceutical industry and stressed the need for further investments in research and rural healthcare.
Tuhin A Sinha, National Spokesperson for BJP, remarked that the exit polls support the PM’s vision of Viksit Bharat (developed India) and are positive for the pharmaceutical and healthcare sectors, where India has emerged as a global leader.
India as an Electronics Hub:
With the BJP government at the center and gaining influence in major manufacturing hubs like UP, AP, and Telangana, the industry expects further impetus to transform India into a major hub for electronic exports. The government’s PLI scheme has attracted leading players to set up new plants, increasing capacity in areas like mobile handsets, LEDs, and components for air conditioners.
Avneet Singh Marwah, CEO of Superplastronics, emphasized the importance of policy continuity and infrastructure development to support the industry. He also called for a reduction in GST rates on household items like TVs and ACs to stimulate demand.
Rajiv Nath, forum coordinator of the Association of Indian Medical Device Industry (AiMeD), anticipates government support to enhance medical device manufacturing, advocating for a predictable tariff regime and fair pricing practices.

June 3, 2024
CRISIL SME Tracker: Higher demand, PLI to propel electronics MSMEs in FY25

CRISIL SME Tracker: Higher demand, PLI to propel electronics MSMEs in FY25

Various factors contributed to the growth, such as increasing penetration of internet and 5G services, rising consumer income, shorter replacement cycles, easier payment terms
Domestic consumption of electronics items is estimated to have grown 13-15 per cent to Rs 14-15 trillion in the financial year ended March 31, 2024 (FY24), with mobile phones and consumer and industrial electronics accounting for 50-55 per cent of the pie.
Various factors contributed to the growth, such as increasing penetration of internet and 5G services, rising consumer income, shorter replacement cycles, easier payment terms, and developments in the auto, electric vehicle, and power segments.
In FY25, overall electronics consumption growth is expected to moderate to 10-12 per cent as inflation marginally affects sales of mobile phones and consumer durables, which account for 40 per cent of electronics consumption in the country.
Electronics production, however, is expected to grow 15-20 per cent, largely owing to the production-linked incentive scheme (PLI) that is encouraging manufacturing of mobile phones, white goods, information technology hardware, and solar photovoltaic cells and modules.
That augurs well for the micro, small and medium enterprises (MSMEs) that produce electronics components and assemble consumer and industrial electronics products.
The MSME units account for 25-35 per cent of the industry’s consumption of components. These units are expected to log a revenue growth of 11-13 per cent year-on-year (Y-o-Y) in FY25, driven by mobile phones, consumer and industrial electronics, computer hardware, and strategic electronics.
As for margins, following a range-bound performance in FY24, the MSMEs are expected to experience a slight contraction of up to 30 basis points in FY25, primarily because of commodity prices.

May 29, 2024