Electronic & semiconductor sector: 2022 Review and Outlook 2023

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By Dr. Ajai Chowdhry, Founder, EPIC Foundation

In 2022, the electronics and semiconductor industry observed a progressive growth in manufacturing and exports especially in the area of mobiles. The revised semiconductor policy enabled 50% contribution from the government for all types of plants. Recently, the telecom department has constituted four task forces to remove bottlenecks, suggest measures and boost the overall domestic telecom manufacturing ecosystem. Production Linked Incentive Scheme is another great initiative by the Indian government that is working as a support system for the manufacturing companies. We are now looking forward to some of the proposals being approved over the next few months.

Currently a large number of electronics & semiconductor products are imported. For the next 10 years, we should identify certain products and design these in India. This needs to be incentivized to make India a product nation. This will create the demand for semiconductor plants that are planned. In the current geopolitical situation, India can replace China as a trusted source for products. Our suggestion would be to add 1% to all PLI schemes to promote design as what has been done for the telecom sector.

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