IESA President Ashok Chandak Highlights Strategic Policy Refinements to Boost India’s lectronics Manufacturing Ecosystem
New Delhi, Mar 11: Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA), welcomed the recent policy refinements under the Press Note 3 framework, emphasizing their potential to strengthen India’s electronics manufacturing ecosystem while safeguarding national interests.
“The recent policy updates represent a balanced and pragmatic step towards creating an enabling environment for global capital and technology partnerships in upstream electronics manufacturing. By providing clarity on beneficial ownership and introducing faster approval timelines, the government is signaling its commitment to accelerating India’s electronics growth,” said Chandak.
Chandak underscored the importance of strengthening India’s components and materials ecosystem, the “missing layer” in the country’s manufacturing value chain. Key investment areas include passive components (MLCC capacitors, resistors, inductors), connectors and electromechanical components, PCB fabrication and materials, electronic capital goods, and semiconductor supply chain materials such as polysilicon and silicon wafers. “These segments account for nearly 40% of the bill of materials in electronic products. Expanding local manufacturing in these areas will reduce import dependence, improve domestic capabilities, and integrate India more deeply into global supply chains,” he added.
Highlighting market potential, Chandak noted,
“India’s current demand for passive components is estimated at $6–8 billion, connectors around $2–3 billion, and the PCB ecosystem exceeds $6 billion, creating a combined opportunity of $15–18 billion today. As India’s electronics production expands, this could grow to $35–40 billion by 2030.”
Chandak also stressed the need for vigilance in ensuring that investments remain non-strategic and non-controlling, with strong safeguards on beneficial ownership, board representation, and technology access. “While India should actively leverage global capital and manufacturing capabilities, it is equally important to ensure that no external entity influences strategic decision-making or exerts undue pressure over critical technology sectors. Partnerships must be approached with a long-term national perspective rather than short-term gains,” he commented.
Chandak concluded, “Combined with initiatives such as the ECMS scheme, these policy refinements can help India build a robust domestic electronics components ecosystem and unlock the next phase of growth in the country’s electronics manufacturing journey.”
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