Key Achievements

ICEA has assisted the Ministry of Electronics & Information Technology (MeitY) to formulate new schemes for the growth of the Electronics Industry in India:

Production Linked Incentive Scheme (PLI) for Large Scale Electronics: The scheme shall extend an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five (5) years subsequent to the base year as defined.

Scheme for Promotion of manufacturing of Electronic Components and Semiconductors (SPECS): It is proposed to offer financial incentive of 25% of capital expenditure for the manufacturing of goods (list given by the ministry) that constitute the supply chain of an electronic product.

Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme: The objective of the scheme is to address the disabilities, by providing support for creation of world class infrastructure.

  • ICEA played a key role to support MeitY on drafting the National Policy on Electronics – 2019 (NPE 2019) which has prioritised mobile handset manufacturing as the Champion sector under the overall electronics manufacturing vision over the next 5-6 years.
  • By 2025, the total electronics manufacturing goal is expected to reach US $300 Billion.
  • ICEA has conducted various in-depth studies with eminent Knowledge Partners such as McKinsey, IKDHWAJ, E&Y, KPMG in the recent past. These reports focussed on various aspects which include understanding India’s manufacturing competitiveness vis-à-vis other competing geographies such as China and Vietnam, the benefits to get accrued to the Indian economy, jobs etc. in lieu of achievement of the NPE 2019 targets assigned for the mobile handset and components manufacturing, understanding the role and benefits of open OS eco-systems etc.
  • Based on ICEA’s effective advocacy efforts, the recent CPCB import bans handed out to some of the prominent industry stakeholders has got vacated at a quicker possible time frame bringing relief to the industry and this ensured that the legal market operations do not suffer.
  • Based on ICEA’s persistent efforts with the Government at the highest order today this sector is getting prioritized attention and focus at PMO, Finance and other critical ministries/departments which has been immensely helpful to get appropriate policy support for this sector.
  • With the spurt in manufacturing activity India overtook Vietnam to be the 2nd largest mobile handset manufacturing country after China. In 2020, 290 million handsets were produced in India. In 2014, the production was 18,900 crore and by 2020-21, it reached 2,20,000 crore.
  • ICEA’s pioneering contributions to enable development of a robust mobile handset manufacturing eco-system in India is in sync with the “Make in India” initiative of the Government of India under the leadership of the Hon’ble Prime Minister, Mr. Narendra Modi. Only 2 manufacturing units were operating in India during 2014 but at the end of 2018, there were approximately 268 new manufacturing units that were established in India which were considered as the biggest success under the Make in India flagship initiative of the Government.
  • ICEA’s pioneering efforts to establish the Phased Manufacturing Program (PMP) which is aimed at widening and deepening of the components manufacturing eco-system in Phased wise/ Component wise manner. PMP roadmap which was originally prepared by ICEA and submitted to the Government has now become the official program of the Government with MeitY notifying the same in 2016 and the same is being implemented year after year.
  • Establishment of Safety and Performance standards related to mobile handsets and components such as Batteries in BIS and further get them implemented under the CRS (Compulsory Registration Scheme) of the MeitY. ICA (currently ICEA) successfully intervened at each stage of the CRS implementation Phase in order to ensure that the same is implemented seamlessly without disrupting the legal market operations.
  • A robust mobile manufacturing eco-system got established in India during 2006 – 2012 whereby Nokia established and operated the World’s largest mobile manufacturing plant from India. Made in India handsets were being exported to more than 100 countries around the world with India being made the Export HUB. ICA (currently ICEA) + DIT (currently MeitY) led initiative to establish Manufacturing Advisory Committees (MAC) Phase I and Phase II and its recommendations led to this significant rise in manufacturing capabilities. Needless to mention the first era of mobile manufacturing activity in India significantly faded away after scaling down and subsequent closure of the Nokia manufacturing plant during 2014 with exports crashing to zero.
  • Establishment of an almost 90-95% legal market operations as evident today from almost scratch during 2000 – 2002. High CVD/ VAT applicable on mobile handsets during 2000 – 2002 were gradually brought down to lower rates leading to spurt in legal market operations.