India Aims To Become Global Hub For Electronics Production, Key Player In Global Supply Chain: Report. India is working towards being in the category of countries like the US, China, South Korea, Germany and Japan dominant in the global manufacturing industry.
Various initiatives and investments, like ‘Make in India’ and ‘Digital India’ aimed at enhancing economic growth are propelling the country forward.
India Aims To Become Global Hub For Electronics Production
NITI Aayog’s latest report ‘Electronics: Powering India’s Participation in Global Value Chain’ highlighted that India holds a significant position with a total manufacturing output valued at USD 457 billion, still it only accounts for 3.3 percent of the world’s manufacturing output.
The government think tank says India has a huge potential in the global manufacturing and electronics industry. It pointed out that India’s electronics sector recorded a significant value of exports, contributing 5.32 percent to India’s total merchandise exports.
This reflects competitiveness in the global market and its ability to capitalize on worldwide demand, and enhances India’s position in the global electronics landscape.
The report stated that India’s electronics manufacturing primarily involves the final assembly of electronic goods. It noted that brands and design firms are increasingly outsourcing assembly, testing and packaging tasks to electronic manufacturing services companies in India, with the component manufacturing sector being nascent .
Experts at NITI Aayog believe India will advance to USD 500 billion in electronics production with USD 200-225 billion in exports by 2030. Finished goods and components will play significant roles, and are likely to contribute USD 350 billion and USD 150 billion, respectively, in production. This will lead to the generation of large-scale job opportunities.
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For this projected growth, the report recommended a range of interventions across multiple domains, such as fiscal, financial, trade promotion, technology transfer, regulatory reforms etc. The government should also look into hard infrastructure, soft infrastructure, skill development, R&D, and design.
Reforms will help India boost its global value chains (GVCs) stimulate domestic manufacturing and attract foreign investment.
