The demand for electronic components and sub-assemblies is expected to grow significantly by 2030, reaching USD 240 billion. This includes key parts such as motherboards, lithium-ion batteries, and camera modules, most of which are currently imported. A report by the CII released on Sunday suggests that the government should consider revising the electronic components production-linked incentive schemes to offer higher incentives, in the range of 35-40%, to reduce import dependence.
In 2023, the demand for components and sub-assemblies was valued at USD 45.5 billion, supporting a production worth USD 102 billion. This demand is projected to increase to USD 240 billion, supporting a USD 500 billion worth electronics production by 2030. It is anticipated that priority components and sub-assemblies, including PCBAs, will grow at a robust CAGR of 30%, reaching USD 139 billion by 2030.
The report highlights batteries (lithium-ion), camera modules, mechanical components (enclosures, etc.), displays, and PCBs as high-priority components for India, collectively accounting for 43% of the components demand in 2022 and expected to grow to USD 51.6 billion by 2030. The report emphasizes that India must reduce its reliance on imported priority components to sustain growth.
