‘Building electronics capabilities in a sustained way’ : Ashwini Vaishnaw downplays China dependence; says India to hit 38% value add in 5 years

India is steadily building its electronics manufacturing capabilities and is on course to achieve a value addition of 38%, comparable to China’s, within the next five years, Union minister for electronics and IT, railways and information & broadcasting Ashwini Vaishnaw said on Thursday.During an ET roundtable, Vaishnaw said the country is developing its electronics ecosystem in a “very methodical and sustained way.”Currently, India has surpassed the 20% value addition mark within six to seven years, and aims to cross 30% in the next two to three years. He was responding to questions on recent reports that Apple supplier Foxconn has recalled over 300 Chinese engineers from its iPhone production facilities in India.

‘De-risking’ supply chains & a $145 billion electronics sector

According to a Bloomberg report quoted by ET, the move, allegedly driven by Chinese government directives to restrict talent outflow, may impact assembly line efficiency and delay the training of local Indian workers. Vaishnaw, however, said India is focused on “de-risking” by developing local skills and supply chains. “Which is what we are doing,” he said.The minister downplayed India's dependence on Chinese personnel, noting that countries like Taiwan, the US and South Korea are contributing to the growth of India’s manufacturing ecosystem alongside Indian engineers.

India’s electronics sector is currently valued at around $145 billion and is growing at a compound annual growth rate (CAGR) of 20%. The government is backing this expansion through key initiatives such as the Rs 76,000 crore India semiconductor mission and the Rs 23,000 crore components incentive programme launched earlier this year.Vaishnaw also pointed to major developments in the sector, including Tata Electronics’ upcoming chip assembly plant in Assam, which will cater to global telecom manufacturers, and the Micron facility in Gujarat, which will supply memory chips.

Additionally, a power electronics manufacturing unit by CG in Gujarat is also in the pipeline.Highlighting the importance of self-reliance in electronics, Vaishnaw said India must build capabilities in “every machine, every component” to withstand geopolitical uncertainties. “We must go into every part of it and start manufacturing them,” he said