Electronics manufacturing can contribute $1 tn to India's
economy by 2025

The electronics manufacturing industry alone can contribute $1 trillion to the Prime Minister’s vision of making India a $5 trillion economy by 2025, telecom and IT minister Ravi Shankar Prasad said on Thursday.

“My future plan is very straight and simple. I am not going to stop with mobile phones. By 2025, we will manufacture 1 billion mobile phones, 50 million TVs and 50 million hardware including laptop and tablets,” Prasad said during the virtual conference on ASSOCHAM Foundation Week. “Therefore, you talked of a $5 trillion economy, I have not the slightest doubt that by proper scaling of the electronics manufacturing industry, we will be able to contribute $1 trillion by this manufacturing alone,” he said.

Since 2014, the number of mobile phone manufacturing units have increased from just 2 to 250 now and created close to 6 lakh direct jobs. Noida alone has attracted 90-plus handset manufacturing facilities.

Highlighting the role of M-SIPS (Modified Special Incentives Package Scheme) 2016, the minister said that while the government has disbursed over Rs 1000 crore in incentives, the manufacturing firms have paid Rs 35,000 crore in taxes and contributed to exports worth Rs 47,000 crore. He also said that the 16 companies approved under the latest production-linked incentive scheme, which was launched at the height of COVID spread in India, have already started production and are on their path to generate an output of Rs 10 lakh crore by 2025.

Talking about the growth of digital inclusiveness, Prasad said that because of the JAM (Jan-Dhan, Aadhar, Mobile) trinity, the government has disbursed over Rs 13 lakh crore under 400 government schemes directly to the bank accounts of the poor in the last five-and-a-half years. “We have saved close to Rs 1.78 lakh crore which used to be pocketed by middlemen,” he said. He also said the growth of digital payments by way of UPI (unified payments interface) has recorded the highest ever transactions of 2.21 billion in the month of November.

With regards to digitization of the agriculture sector, Prasad highlighted the role of e-mandis, which today host close to 1.68 crore farmers and 1 lakh traders who have done a business of Rs 1.15 lakh crore. There are close to 1000 e-mandis in 21 states in India, he said.

Source: Economic Times