NITI Aayog's Plan to Make India a Global Electronics Leader
NITI Aayog's Plan to Make India a Global Electronics Leader
New Delhi, July 19: NITI Aayog has released a report titled "Electronics: Powering India's Participation in Global Value Chains", highlighting the growth and potential of India's electronics sector. The report outlines the necessary steps for India to become a global manufacturing hub for electronics.
Importance of Global Value Chains
Global Value Chains (GVCs) are essential in modern manufacturing, involving international cooperation in design, production, marketing, and distribution. GVCs account for 70% of global trade, making it crucial for India to enhance its participation, especially in electronics, semiconductors, automobiles, chemicals, and pharmaceuticals.
Growth of India's Electronics Sector
India's electronics sector has seen rapid growth, reaching USD 155 billion in FY23. Production nearly doubled from USD 48 billion in FY17 to USD 101 billion in FY23, driven mainly by mobile phones, which now constitute 43% of total electronics production. India has significantly reduced its dependence on smartphone imports, now manufacturing 99% domestically.
Challenges and Opportunities
Despite these advances, India's electronics market is relatively small, representing just 4% of the global market. The focus has been on assembly, with limited capabilities in design and component manufacturing. To enhance competitiveness, India needs to localize high-tech components, invest in R&D, and form strategic partnerships with global tech leaders.
Future Projections
In a Business As Usual (BAU) scenario, India's electronics manufacturing could reach USD 278 billion by FY30, creating around 3.4 million jobs and generating USD 111 billion in exports. However, with a more ambitious vision and supportive policies, India could aim for USD 500 billion in electronics manufacturing by FY30, creating jobs for 5.5 to 6 million people and increasing exports to USD 240 billion.
Strategic Interventions
The report suggests various strategic interventions, including promoting components and capital goods manufacturing, incentivizing R&D and design, tariff rationalization, skilling initiatives, facilitating technology transfers, and developing infrastructure. These measures aim to create a robust electronics manufacturing ecosystem in India.
Conclusion
India has immense potential to become a global leader in electronics manufacturing. By seizing emerging opportunities, enhancing value chain integration, and overcoming existing challenges, India can transform its electronics sector into a cornerstone of economic growth and job creation.
Doubts Revealed
NITI Aayog
NITI Aayog is a government organization in India that helps plan and develop the country's economy. It stands for National Institution for Transforming India.
Global Value Chains (GVCs)
Global Value Chains are the different steps involved in producing a product, from getting raw materials to making the final product, which often happen in different countries.
Electronics sector
The electronics sector includes companies and industries that make electronic devices like mobile phones, computers, and other gadgets.
Manufacturing hub
A manufacturing hub is a place where a lot of products are made. India wants to become a major place where electronics are produced.
Exports
Exports are goods that are made in one country and sold to other countries. India wants to increase the number of electronics it sells to other countries.
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