Electronics supply chain must give equal access to everybody: Chandrasekhar

We expect transparency in supply chains from all players in the ecosystem, minister says

The Minister of State for Electronics and Information Technology Rajeev Chandrasekhar on Monday said the electronics manufacturing industry needs to ensure transparency and equitable access to supply chains for all the players in India.

The remarks are significant as there have been reports that global electronic manufacturers are restricting the electronic components supply chains to a closed set of vendors. The local companies have complained that this trend has impacted the growth of India’s domestic manufacturing.

Chandrasekhar said the industry must maintain fairness, openness, and equity. “We expect a transparent distribution model, transparency in supply chains, and equitable access to these supply chains from all players in the electronics manufacturing ecosystem in India,” he said.

Chandrasekhar further said that wherever the government feels there is crowding out of Indian brands due to unfair trade practices, “We would like to intervene and make sure that those issues are resolved”.

Speaking at the launch of a report by ICRIER in collaboration with industry body ICEA on increasing domestic value addition, the minister said the government was committed to strengthening the country’s domestic manufacturing ecosystem to make it more resilient to supply chain disruptions. “The aim is to emerge as a reliable and trusted partner in global value chains,” he said.

Chandrasekhar said the electronics value chain has been undergoing deep tectonic irreversible changes post Covid-19, which has presented India an opportunity. Hence, the export target has been set at $120 billion by 2026.

He added, “The government is laser focused on achieving the target of $300 billion electronic production by 2026. Our aim is to emerge as a reliable and trusted partner in Global value chains.”

The government has offered incentives to help achieve this target, Chandrasekhar said, adding that it was clear that there would be a comprehensive support incentive package and policy framework for the component industry, one of which is semiconductors.

He added that companies from the United States of America, Taiwan, and Europe have shown interest in setting up semiconductor manufacturing units here.

The minister said he could not comment on how many Taiwanese companies would set up units here. “That you will know after the advisory committee finishes evaluating the proposals that you must have read in the media.”