- 27 May 2022
- ICICIdirect Research
GOVERNMENT REVISES ELECTRONIC PRODUCTION TARGET
News: The government has revised electronic production target from US$ 400 bn to US$ 300 bn by 2026. According to ET, the government revised electronic production target to US$ 300 bn by 2026 against US$ 400 bn by 2025 due to various macro disruption such as pandemic and war. Mobile, IT hardware to drive overall Electronic production target
Views: The domestic electronic production stood at US$ 75 bn in FY21. Even with downward revision, the government still aims ~300% growth in the electronic production by FY26, supported by increased mobile and IT hardware production. The mobile production is likely to increase by 320% to US$ 126 bn while IT hardware production will see a multi-fold jump (~8x) to US$ 25bn by FY26. We believe, increased electronic production will benefit contract manufacturer such as Dixon Technology and Amber Enterprises, who are already PLI licensees of government’s various electronic PLI schemes
Impact: Neutral