Make in India Initiative for Electronic Products - Promoting Sustainability in Electronics Sector

Updated on January 09, 2025 03:59:58 PM

The Make in India program has improved the electronics sector of the nation and led it into a hub of innovation, manufacturing, and self-reliance. Due to higher demand for smartphones, consumer electronics, and semiconductors, India has the potential to emerge as a global electronics manufacturing hub. Under the Make in India program there are various policies such as the Production Linked Incentive (PLI) Scheme and Electronics Manufacturing Clusters (EMC) that the government has implemented to boost the businesses. The Make in India initiative helps decrease import reliance, generates employment opportunities, increases exports, and encourages technological development of the electronics sector. Understand how the Make in India scheme is going to revolutionize the electronics manufacturing sector in India with Professional Utilities.

What is Make in India

The Make in India initiative was launched in September 2014 and it seeks to make India one of the world’s manufacturing destinations. The Make in India aims to improve and develop the electronics industry further as it is crucial for economic development, job creation, and technology advancement. Make in India Scheme assists in creating employment, boosting manufacturing, which reduces import dependence and promotes investments helping India to gain better positioning in the global marketplace. The following article focuses on the role of the Make in India initiative in inspiring industrial change for the electronics industry of self-sufficiency, export drive and laying down the foundation for the realization of India’s potential as a global electronics hub.

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Benefits of Make in India for Electronic Products

The government of India has identified electronics manufacturing as one of the focus sectors under its Make in India program and It provides the following benefits to the businesses in electronics industry:

  • Reduce Import Dependency: The Make in India scheme promotes domestic production and helps to decrease import dependencies from other countries.
  • Boost Exports: Increasing the competency of the production processes to match international quality standards allows India to become an electronics export destination.
  • Enhances Job Creation: The Make in India initiative helps generate employment opportunities in the electronics sector.
  • Promote Innovation: Make in India helps finance the R&D in electronics sector to improve establishing new and better technologies.
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Key Policies and Initiatives for Electronic Products under Make in India

The government has implemented various schemes to support electronics manufacturing under Make in India:

1) Production Linked Incentive (PLI) Scheme

Eligible companies receive incentives for incremental sales in focus areas of the manufacturing industry which are mobile phones, semiconductors and consumer electronics.

2) Electronics Manufacturing Clusters (EMC) Scheme

Provides required and suitable structures for manufacturing plants all over the world and promotes industrial parks that deal with electronics.

3) Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)

Provides financial incentives for manufacturing of strategic electronics components.

4) Digital India Initiative

Focuses on increasing digital connectivity and infrastructure, and increasing demand for electronics.

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Classes of Local Suppliers under Make in India Guidelines

To boost local industries and cut down on imports, the Department for Promotion of Industry and Internal Trade (DPIIT) amended the Public Procurement (Preference to Make in India), PPP-MII, on June 4, 2020. The PPP-MII order classifies local suppliers into categories according to the local content in the goods, services, or works that they produce. The Make in India classifications are as follows:

  • Class-I Local Supplier - A supplier or service provider, whose goods, services or works offered for procurement, has local content equal to or more than 50%.
  • Class-II Local Supplier - A supplier or service provider, whose goods, services or works offered for procurement, has local content more than 20% but less than 50%.
  • Non-Local Supplier - A supplier or service provider, whose goods, services or works offered for procurement, has local content less than or equal to 20%.
  • Under the PPP-MII Order -
    1. Only Class-I Local Suppliers and Class-II Local Suppliers are eligible to bid for the procurement of goods, services, or works.
    2. For procurement with an estimated value less than ₹200 crore, only these two categories are considered, further strengthening the Make in India initiative.

The Make in India initiative scheme incentivizes domestic suppliers to enhance local content in their offerings and contributes to the growth of India’s manufacturing ecosystem.

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Challenges in Make in India for Electronic Products

While Make in India program has driven growth in the electronics sector, significant challenges remain and addressing these issues is crucial for fully realizing the potential of Make in India for electronic products:

  • High Import of Components: The supply chain of a mobile phone requires several components, out of which India has to import several essential components, semiconductors in particular, thus raising the production costs significantly.
  • Underdeveloped Infrastructure: The absence of a high-tech manufacturing base is a restrictive factor in terms of scale and development.
  • Skilled Workforce: Constraints such as inadequate skilled human resource, and qualified technical resources affect industries’ growth and effectiveness.
  • Global Competition: In the face of more mature markets such as China or Vietnam, India has to compete and present comparable, cheap ecosystems and capabilities.
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Conclusion

The Make in India initiative has drastically improved the sectors of electronics manufacturing paving way for innovation and advancing manufacturing capabilities. Through lowering dependence on imports, the Make in India scheme encourages exports and employment and provides a solid base for making India an electronics hub. Policies under the Make in India program include the PLI Scheme, EMC Scheme, SPECS and more are integral to helping local industries and incorporating new technologies. Nevertheless, issues such as import dependency, underdeveloped infrastructure, skill development of human resources, and competition from the global players are a setback. Continued and determined efforts needed in Make in India can take the electronics industries to higher levels, for building a robust and sustainable manufacturing ecosystem.

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Frequently Asked Questions

What is the Make in India initiative?

The Make in India aims to develop the country as a manufacturing powerhouse across sectors such as electronics and it fosters the growth of domestic industries, reduces import bills, increases employment opportunities and technological advancement.

How does Make in India benefit the electronics industry?

Make in India is beneficial to the electronics industry as it cuts on importation, increases on exportation, creates employment and encourages innovation and assists in making India a electronics manufacturing hub.

What are the classes of local suppliers under Make in India?

The PPP-MII order classifies suppliers into three categories based on local content:

  • Class-I Local Supplier: Local content of 50% or more
  • Class-II Local Supplier: Local content between 20% and 50%
  • Non-Local Supplier: Local content of 20% or less
  • Class I and class II suppliers are the only ones allowed for bidding for procurement with a value not exceeding ₹200 crore.

What challenges does Make in India face in the electronics sector?

The challenges include high import dependency where some crucial raw materials such as semiconductors are imported, low infrastructure, skillful human resource requirements, and intense competition from experienced nations such as China and Vietnam.

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Make in India Initiative Across Key Sectors

Make in India in Power SectorMake in India in Petroleum and Natural GasMake in India in Telecom ProductsMake in India in Automobile Sector
Make in India in Textile SectorMake in India in Industry and Internal TradeMake in India in MSMEMake in India in Ports and Shipping