HT Bureau
GUWAHATI, March 13: The recent policy refinements around investments under the Press Note 3 framework represent a balanced and pragmatic step towards strengthening India’s electronics manufacturing ecosystem while safeguarding national interests, said Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA).
Chandak said that by providing greater clarity on beneficial ownership and introducing faster approval timelines, the government has created a more enabling environment for attracting global capital and technology partnerships into upstream electronics manufacturing.
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He noted that India’s electronics growth now requires strengthening the components and materials ecosystem, which remains a missing layer in the country’s manufacturing value chain.
Investments in passive components such as multilayer ceramic capacitors (MLCC), resistors and inductors, connectors and electromechanical components, printed circuit board (PCB) fabrication and materials, electronic capital goods, and semiconductor supply chain materials such as polysilicon and silicon wafers can significantly reduce import dependence and enhance domestic manufacturing capabilities.
“These segments form the backbone of electronics manufacturing and account for nearly 40 per cent of the bill of materials in electronic products,” Chandak said.
Highlighting the market potential, Chandak said India’s current demand for these segments is already substantial.
The passive components market is estimated at around $6–8 billion, connectors at about $2–3 billion, and the PCB ecosystem exceeds $6 billion.
Together, these segments represent a combined opportunity of $15–18 billion at present, which could expand to $35–40 billion by 2030 as India’s electronics production continues to grow.
He added that localising manufacturing in these areas would increase domestic value addition, enable deeper integration into global supply chains, and support the expansion of sectors such as mobile devices, consumer electronics, automotive electronics, telecom infrastructure and industrial electronics.
At the same time, Chandak stressed that both industry and policymakers must exercise continued vigilance to ensure that investments remain non-strategic and non-controlling, with strong safeguards related to beneficial ownership, board representation and access to technology.
While India should actively leverage global capital and manufacturing capabilities, it is equally important that no external entity is able to influence strategic decision-making or exert undue pressure on the country’s critical technology sectors, he said, adding that industry leaders must approach partnerships with a long-term national perspective rather than focusing on short-term opportunities.
Chandak further said that the policy refinements, along with initiatives such as the Electronics Components Manufacturing Scheme, can help India build a strong domestic electronics components ecosystem and unlock the next phase of growth in the country’s electronics manufacturing journey.
