According to a report by The Mint on November 14, several local Indian electronics manufacturing companies are actively investing in acquisitions and expanding their production capacity, aiming to shift their profit structure toward high-value-added component manufacturing. Currently, the Indian electronics manufacturing industry is facing a "profit margin dilemma" - despite significant revenue growth, the operating profit margins of most enterprises remain between 2% and 7%. Therefore, Indian companies are seeking to enter the industrial electronics sector. This sector has lower output but significantly higher profit margins compared to mass assembly operations. In addition, in April, the Ministry of Electronics and Information Technology of India launched the "Electronic Component Manufacturing Scheme (ECMS)" with a budget of 229.19 billion rupees (₹22,919 crore), offering up to 50% subsidies for capital expenditures in local electronic component manufacturing. Currently, Dixon Technologies has applied for support under this scheme, planning to invest 30 billion rupees (₹3,000 crore) to produce display modules and camera modules. Analysts point out that component manufacturing may become a key driver of growth for the Indian electronics industry, but whether Indian companies can meet market expectations remains to be seen. It is predicted that by 2030, India's electronics production will increase from 11 trillion rupees (₹11 trillion) at the end of 2025 to 44 trillion rupees (₹44 trillion).
Original article: www.toutiao.com/article/1848911514665995/
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