The report is the outcome of an extensive analysis of India’s electronics sector, including its scopes and challenges, the Niti Aayog said.
The Niti Aayog will unveil on Thursday a report titled “Electronics: Powering India’s Participation in Global Value Chains,” outlining the roadmap for the country to become a global manufacturing hub in electronics manufacturing.
The report is the outcome of an extensive analysis of India’s electronics sector, including its scopes and challenges, the Niti Aayog said.
In the current scenario, 70 per cent of international trade comprises Global Value Chain (GVC) items, emphasising the critical need for India to enhance its GVC participation.
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This can be achieved by prioritising sectors such as electronics, semiconductors, automobiles, chemicals, and pharmaceuticals, which play a significant role in the GVC landscape.
Within the GVCs, the electronics sector holds a significant position as nearly 80 per cent of the electronics exports come from GVCs.
During the financial year 2023, India’s electronics sector recorded a significant value of exports, contributing a considerable share of 5.32 per cent to India’s total merchandise exports.
The sector’s export performance highlights its competitiveness in the global market and its ability to capitalise on international demand. It has also enhanced India’s position in the global electronics landscape.
The electronics sector is “very high” in terms of GVC participation. It is not confined to a particular country or economy and is spread across several geographies and firms.
At present, India’s electronics manufacturing primarily involves the final assembly of electronic goods. While brands and design firms have increasingly started outsourcing assembly, testing, and packaging tasks to Electronic Manufacturing Services (EMS) companies in India, the ecosystem for design and component manufacturing is at a nascent stage.
The manufacturing sector will play a crucial role in India’s journey towards becoming Viksit Bharat. It can be achieved by accelerating the Make in India initiative by engaging in Global Value Chains. The Niti Aayog’s report will lay down a roadmap keeping this perspective in view.
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