India can become $100 billion manufacturing, export hub for PCBA: ICEA

The report estimates the global PCBA market across four key electronic product segments to be $358 billion by 2025-26.

PCBA is often called the heart of an electronic device and constitutes up to 50% of the cost of manufacturing. (Pixabay)

India has the potential of becoming a $100 billion global manufacturing and export hub for Printed Circuit Board Assembly (PCBA) along with mobile phone manufacturing, a new report by Indian Cellular and Electronics Association (ICEA) said in its latest report.

In its report titled ‘Atmanirbhar Bharat Making India the global hub for Printed Circuit Board Assembly -- Market opportunity and key imperatives to drive of export-led growth' ICEA said that PCBA manufacturing and exports from India can be a $100 billion opportunity during 2021-26. The report estimates the global PCBA market across four key electronic product segments to be $358 billion by 2025-26.

PCBA is often called the heart of an electronic device and constitutes up to 50% of the cost of manufacturing. It is at the core of every electronic device such as mobile phones, tablets, computers, routers, televisions, washing machines, refrigerators, and air conditioners. The cost of a PCBA in an electronic device ranges from 10% to 50% of the bill of materials.

Considering the cost implications and their use in electronic devices, the report lays emphasis on the development of manufacturing capabilities for PCBA. It provides perspective on the benefits of transforming India into a PCBA exports hub. The list of those benefits includes reduced imports, decoupling from China, better trade balance including with China and the gradual development of core SMT technology in India.

ICEA estimates that PCBA manufacturing can lead to backward integration and development of the component ecosystem in India. That said, ICEA in its report noted that PCBA manufacturing requires an uninterrupted power supply and round-the-clock operations and is capital intensive. To offset such disabilities and enable competitiveness of manufacturing in India, it is recommended to provide incentives similar to the PLI scheme for mobile phones.

“Companies manufacturing in India suffer a disability due to inadequate availability of quality power, infrastructure and logistics; lack of domestic supply chain; high cost of finance; limited R&D, etc PCBA exports can be the next great opportunity for India's electronics exports after mobile phones and appropriate incentives are being recommended in line with the PLI scheme announced for mobile phones”, Pankaj Mohindroo, Chairman, ICEA said while showcasing the report.