New Delhi, Feb 12 (IANS) India’s domestic Printed Circuit Board Assembly (PCBA) market demand is set to touch $81.5 billion by 2025-26, while the global PCBA demand is expected to grow to $330 billion by the same time, said a new report on Friday.
At the same time, India can export PCBAs up to $100 billion on the back of good incentives to overcome the cost disabilities, said the report by Manufacturers’ Association for Information Technology (MAIT).
The growth of the electronics industry in Asia has been marked by the growth of PCBA manufacturing.
The PCBA industry’s establishment will likely herald an improved ecosystem development for greater local product manufacturing and exports, MAIT said.
“PCBA is a major segment for future manufacturing and in terms of exports. Out of all the electronics imports, PCBA still accounts for almost 15 per cent,” Saurabh Gaur, Joint Secretary, Ministry of Electronics and Information Technology (MeitY), said in a statement.
The report “PCBA – Developing India’s Leadership in Printed Circuit Board Assembly” highlights that scale in PCBA manufacturing is a tipping point towards becoming a global electronics manufacturing hub.
However, to achieve the domestic and export potential India’s PCBA manufacturing would require high investments and output of $100 billion by 2024-25, it added.
PCBA manufacturing can lead to a generation of 1 million to 1.2 million direct and indirect jobs, according to MAIT.
“India must overcome the cost disability compared to its closest competitor Vietnam and other Asian countries. Government support to negate the cost disability should be viewed as enabling a critical industry segment for exports,” said Nitin Kunkolienker, President, MAIT.
As per the Budget proposals announced by Finance Minister Nirmala Sitharaman on February 1, duty on inputs or parts for manufacture of PCBA of cellular mobile phone has been increased from nil to 2.5 per cent from April 1.