India needs 10-12 new big PCB units with Rs 20K cr investment to cut reliance on imports: Elcina

New Delhi, Dec 29 (PTI) India needs to attract 10-12 big printed circuit board producers over the next five years with an investment of Rs 20,000 crore to reduce dependence on imports and avoid disruptions, electronics industry body ELCINA said in a report.

The report shared with the government in September estimates that the total PCB (printed circuit board) demand in India for the fiscal year 2024–25 was Rs 35,000 crore, approximately USD 4.2 billion, out of which 88 per cent of the requirement was met through imports predominantly from China, Taiwan, South Korea, and select Southeast Asian countries.

"India must address the rising demand by setting up 10–12 new large PCB units, each with a one million square meter capacity, alongside 2–3 million square meters of Flex/Rigid Flex units over the next five years. This expansion will require investments worth Rs 20,000 crore and is projected to generate annual revenues of Rs 20,000 crore," the report said.

Based on the government's target to create a components manufacturing base of USD 150 billion by 2030, the PCB is expected to contribute approximately 9-10 per cent of the total value which comes to around USD 14 billion by the fiscal year 2030.

"Realising this growth will necessitate nearly a threefold expansion of India’s domestic PCB manufacturing capacity over the next six years, supported by private sector investments and policy-driven incentives," the report said.

The report said establishing new facilities will have substantial downstream effects. It will provide direct employment opportunities for 20,000 individuals and create indirect jobs for up to 75,000 more along the value chain, fostering a robust support system for start-ups and research and development institutions that currently rely on imports due to the lack of local quality PCB suppliers.

Mobile devices dominated the demand for PCB in FY 2025 with an impressive 52 per cent share of total market value while representing only 10 per cent of production volume indicating demand for premium PCBs in the segment.

The consumer electronics sector utilised 16 per cent of total production volume and 12 per cent of market value. It was followed by automotive electronics with consumption of 7 per cent of production volume and 5 per cent of PCB market value in fiscal year 2025.

Industrial electronics dominated PCB usage by volume, accounting for 42 per cent of all boards produced, yet contributed only 10 per cent of market value.

The telecommunications electronics sector accounts for 6 per cent of PCB production volume and 7 per cent of market value in fiscal year 2025, reflecting a balanced contribution to both volume and revenue, the report said.

Elcina said that the electronic components manufacturing scheme (ECMS) has been exceptionally well received by industry stakeholders, with numerous large-scale projects having already been submitted for application and awaiting approval.

"Additionally, there are reports of some ecosystem participants establishing raw material production units in CCL (copper clad laminate). Collectively, these developments indicate a growing and optimistic outlook for the Indian PCB sector industry," the report said. PTI PRS PRS MR