China imports $700 billion worth of components to export $1 trillion in electronics, says ICEA chairman Pankaj Mahindroo

Pankaj Mahindroo speaking at the UP Tech Next Summit

For a country to export at scale, it will also need to import several components, Pankaj Mahindroo, the chairman of the India Cellular and Electronics Association (ICEA), has said.

Participating in a panel discussion at the CNBC-TV18 and Moneycontrol UP Tech Next Electronics and Semiconductor Summit on December 2 in Lucknow, Mahindroo cited the example of China, which imports components worth $700 billion to export electronics worth $1 trillion.

“We need to export more than we import. We are building a middle layer. We have a disadvantage in capital cost and interest rate compared to China and Vietnam. India's core strength is manpower. Our biggest fault line is we are very inward-looking, which shows in our merchandise exports,” Mahindroo said.

The core of every industry is growth driven by entrepreneurs and companies that deploy risk capital, Mahindroo said.

“There is a misconception that this government is not open to criticism, but it is taking feedback positively. The criticism has to be constructive, and the government needs to be told how they should help entrepreneurs,” Mahindroo said, speaking specifically about the state government’s support for the electronics industry.

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Mahindroo said earlier there was a “chill factor” as far as investment in UP was concerned. Noida, which is part of the National Capital Region, is among the country’s hotspots for electronics manufacturing.

Mahindroo said he would go long on UP, indicating his bullishness about the state’s prospects. “It is a national imperative to develop Uttar Pradesh. We are told in UP to remain in our "aukaat" (status), and we run ahead of ourselves as a country," he said.

He suggested that Chief Minister Yogi Adityanath and his ministers should do more roadshows to attract investments, adding UP has something to show now.

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"One of the biggest weaknesses of UP is that leaders and bureaucrats do not travel to get investments,” Mahindroo said.

Sushil Pal, joint secretary, MeitY; Anurag Yadav, UP’s principal secretary IT and electronics; Manish Gupta, director and senior professor, Kaushalya: The Skill University and Rajesh Agarwal, co-founder, Micromax and Bhagwati Products, were the other panel members.