Since Modi bagged his 3rd Victory, now its time for advancements!
As Prime Minister Narendra Modi’s secures a third term, significant advancements are expected in the semiconductor and electronics manufacturing sectors.
Building on the previous term’s ambitious $10 billion semiconductor package, new initiatives are anticipated to focus on end-to-end chip design and manufacturing. The government had previously set a goal of producing $300 billion in electronics products by 2025-26, leveraging production-linked incentive (PLI) schemes to attract global manufacturers looking to diversify beyond China. Ajai Chowdhry, co-founder of HCL, emphasized that the continuity of the NDA government would further bolster India’s economic development, positioning the country as a global leader in electronics, semiconductors, and other high-tech industries. The focus will be on enhancing design and manufacturing capabilities, thereby reducing dependency on imports and fostering domestic innovation and brand creation.
The return of the NDA government has positively impacted market sentiments. For example, Dixon Technologies, a key beneficiary of the government’s electronics policies, saw its stock price recover after an initial drop on election day. The company’s ongoing partnerships, such as assembling phones for Xiaomi and potential collaborations with Google for Pixel phones, illustrate the sector’s growth prospects. Industry leaders like Ashok Chandak, president of the India Electronics and Semiconductor Association (IESA), foresee continued economic reforms that will drive growth in the semiconductor and electronics sectors. Apple’s aggressive expansion of local iPhone production, aiming to increase production in India to over $40 billion in the next few years, underscores the industry’s momentum.
With a strong foundation of $100 billion in electronics production and $44 billion in mobile phones, India is poised to transition from an import-substitution model to an export-led model. The Modi government’s policies and incentives are expected to further accelerate this shift, contributing to India’s vision of becoming a developed nation by 2047.
