S Krishnan, Secretary, MeitY Reminds Intel of Something They Were Supposed to do 15 Years Ago

S Krishnan, Secretary of the Ministry of Electronics and Information Technology (MeitY) in a recent address commended Intel for its end-to-end capabilities in the IT hardware manufacturing process. Krishnan was speaking at Intel’s India Tech Ecosystem Summit. The forum consisted of  Intel leadership, ecosystem partners, tech experts, government representatives and other key stakeholders and focused on various discussions and announcements aligning with the Indian Government’s Make in India (MII) initiative.

Krishnan highlighted the government's Production Linked Incentive (PLI) scheme for IT hardware, launched in November, which has generated considerable interest from companies. Krishnan spoke about the positive response to the PLI scheme, noting that many companies had already started work and were partnering with Intel. He expressed high expectations for the program, emphasizing the importance of domestic production in the electronics sector. Krishnan traced the history of electronics manufacturing in India, emphasizing the need for the country to become a significant player in the global IT hardware market. 

The Secretary underscored the growth potential in the IT hardware industry, especially with the saturation of the smartphone market. "I spoke about that 77 and a half billion dollar market for IT hardware. Even now, a very large proportion of that is imported. It is with great pride that the Honorable Prime Minister could say in the India Mobile Conference Congress about a couple of months ago that 99.2% of all smartphones which are used in the country now are actually manufactured in India," said Krishnan.

With approximately 850 million smartphones already in use in the country, Krishnan predicted a substantial demand for IT hardware in various sectors, including education, industry, and the Internet of Things (IoT). Krishnan acknowledged that, despite the smartphone manufacturing success, a large proportion of the $7.5 billion IT hardware market is still imported. 

He stressed the importance of the PLI scheme in creating a robust ecosystem for IT hardware manufacturing in India, leading to job creation and value addition to the economy. Reflecting on past initiatives, Krishnan mentioned a laptop acquisition program in Tamil Nadu and the challenges faced due to limited domestic manufacturing capabilities. He proposed exploring collaborations with financial institutions to ensure affordability and accessibility of IT hardware, especially for students from less privileged backgrounds. 

S Krishnan, Secretary, MeitY Urges Intel To Setup a Chip Plant in India

Looking ahead, Krishnan urged the industry to focus on semiconductor manufacturing and design capabilities, emphasizing the need for globally recognized Indian brands in the IT sector. "Equally we need to address the issue of components. The semiconductor grid probably constitutes only about 35% of the value when there is about 65% of the value that we can address. And those components also, increasingly are ahead manufacture in the country, I think that is an opportunity, which is sitting to be taken advantage of as we go forward," he stated to the gathering.

He concluded by commending Intel's efforts and encouraged the company to consider setting up a chip plant in India, a move that would contribute significantly to the country's electronics manufacturing ambitions. "I just leave you with one request, something you were supposed to do about 15 years ago and couldn't do at that point. You should sort of probably think back, probably it's a different division within your company, but go back to them and say, why don't we go and set up that chip plant in India again? I think that's where you need to probably go next," said Krishnan on a lighter note.

He added that the Make In India Summit showcased the collaborative efforts between the government and industry players like Intel to propel India towards becoming a prominent hub for IT hardware manufacturing.