The government on Monday said that it was confident of the Indian electronics industry reaching a production of target of $300 billion and exports of $120 billion by 2025-26.
“I have full confidence that this opportunity of $300 billion worth of electronics production and $120 billion of exports by 2026, and transforming India into a significant player in the global electronic GVCs (global value chains). These are real opportunities and we will deliver…and of course, it is even more important for us because it will give many many jobs representing the investments in the country,” Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology, Skill Development and Entrepreneurship, told reporters here on the sidelines of an event.
Speaking at the launch a report by India Council for Research on International Economic Relations (ICRIER), in collaboration with India Cellular and Electronics Association (ICEA), he said India today is the world’s second largest manufacturer of mobile phones, with a clear focus on exports first followed by domestic value addition.
Focus on exports
The report titled ‘Globalise to Localise’ said that India’s electronic exports have nearly tripled between 2015 and 2022 – from $5.8 billion to $16 billion (FY 2021-22). India now plans to achieve the size and pace of exports attained by successful exporting nations such as China and Vietnam.
Electronics as a sector has jumped to the sixth largest export from India this year. Mobile phones constitute the single largest component of electronics exports from India. They are expected to contribute nearly 50 per cent of the total electronics exports by next year, it said.
“Our study finds that China and Vietnam have adopted the mantra of ‘first globalise, then localise’, which means in the initial years they were determined to achieve global scale in exports, and then shifted their emphasis to greater use of local contents,” Deepak Mishra, Director and CE of ICRIER said.
The report, therefore, recommends a sequential approach that can put India’s exports in the same trajectory as China and Vietnam. The immediate goal should be to export at scale to global markets (globalise), and the subsequent objective should be to increase the share of local content (localise), he said.
The report suggests several steps and policies needed for deepening the broader electronics ecosystem within India. Additionally, policies such as Gati Shakti will also help increase India’s competitiveness.
“With exports as our key focus, we are working on policies that will increase domestic value addition over the next few years. The world is looking to us for delivering on our potential,” Pankaj Mohindroo, Chairman of ICEA said.
Published on
August 29, 2022
