Citing Apple and Samsung, DGFT head Sarangi says states should take steps to woo more investors in electronics sector

The Union government had recently cited the need to push domestic manufacturing as one of the reasons behind the decision to restrict the import of laptops, tablets, personal computers, ultra-small form factor computers, and servers.

Indian states should take steps to get more investors in the electronic sector to cash in on the interest shown by the likes of Apple and Samsung to manufacture in India, Santosh Kumar Sarangi, Director General, Directorate General of Foreign Trade (DGFT), Ministry of Commerce said at an event in Kolkata on September 1.

"Indian states must put their efforts and resources into getting investors in electronics and the white goods industry, which includes AC, refrigerators, etc.," Sarangi said.

Citing the potential for exponential growth in exports of electronic products, Sarangi said that India is a huge market for laptops and mobile phones. "Within the last few years, Samsung, Apple and others have all set up manufacturing bases in India and exported from India. High-tech and high-end products are setting up more and more manufacturing bases in the country," he added.

The Union government had recently cited the need to push domestic manufacturing as one of the reasons behind the decision to restrict the import of laptops, tablets, personal computers, ultra-small form factor computers, and servers.

Sarangi's comments come at a time when global giants like Apple and Tesla have been in talks with officials in the country as these companies are scouting for alternative investment destinations for their manufacturing capabilities to reduce reliance on China.

On August 23, Moneycontrol reported citing a senior government official in the know of the matter that Apple is looking at concrete plans to scale up its domestic component manufacturing in India and has shared details of the proposal in a meeting with top finance ministry officials in July.

Apple currently assembles iPhones in India through Taiwanese contract manufacturers Foxconn, Wistron and Pegatron, which are approved under the government's Production Linked Incentive (PLI) scheme for smartphones.

Even as India's exports came in at a nine-month low registering a 16 percent decline to $32.25 billion in July faced with lackluster demand due to a slowdown in major trading partners, outbound shipments of electronic goods continued to grow.

Electronic goods exports registered a growth of 37.6 percent in the first four months of the current fiscal compared to the same period last year, according to a statement from the commerce ministry released on August 14. The statement further said that the growth in the sector is on account of the government's policies that have been facilitating greater investment in electronics, mobile manufacturing, and related segments.