India targets $500 billion in electronics manufacturing by 2030
ECONOMY & POLICY

India targets $500 billion in electronics manufacturing by 2030

As of FY23, India's electronics production stands at $101 billion. The NITI Aayog, in a report released, stated that India should target $500 billion in electronics manufacturing by 2030, aiming to create 6 million jobs.

In the report titled "Electronics: Powering India's Participation in Global Value Chains", NITI Aayog highlighted that the $4.3 trillion global electronics market is dominated by countries such as China, Taiwan, the US, South Korea, Vietnam, and Malaysia.

"India currently exports approximately $25 billion annually, representing less than 1% of the global share despite a 4% share in global demand. To enhance competitiveness, India needs to localise high-tech components, strengthen design capabilities through R&D investments, and forge strategic partnerships with global technology leaders," the government think tank said in a statement.

As of FY23, India's electronics production stands at $101 billion, comprising $86 billion in finished goods and $15 billion in components manufacturing. During the same period, exports totalled $25 billion, reflecting India's growing role in the global electronics market.

Regarding domestic value addition, the sector has contributed around 15 to 18% and generated approximately 1.3 million jobs.

"n a Business As Usual (BAU) scenario, projections indicate that India's electronics manufacturing could escalate to $278 billion by FY30. This forecast includes $253 billion from finished goods and $25 billion from components manufacturing. Employment generation is expected to grow substantially to around 3.4 million, with exports reaching $111 billion," the Aayog said.

The think tank emphasised that India's ambition to become the third-largest global economy necessitates a more ambitious vision for its technology-driven sectors. "With a conducive business environment and robust policy support, including fiscal incentives and non-fiscal interventions, India should aim to achieve $500 billion in electronics manufacturing by FY30,"the report said.

The report recommends strategic interventions across fiscal, financial, regulatory, and infrastructure domains to support this growth trajectory. These include promoting components and capital goods manufacturing, incentivising R&D and design, tariff rationalisation, skilling initiatives, facilitating technology transfers, and infrastructure development to foster a robust electronics manufacturing ecosystem in India.

(Source: BusinessLine)

As of FY23, India's electronics production stands at $101 billion. The NITI Aayog, in a report released, stated that India should target $500 billion in electronics manufacturing by 2030, aiming to create 6 million jobs. In the report titled Electronics: Powering India's Participation in Global Value Chains, NITI Aayog highlighted that the $4.3 trillion global electronics market is dominated by countries such as China, Taiwan, the US, South Korea, Vietnam, and Malaysia. India currently exports approximately $25 billion annually, representing less than 1% of the global share despite a 4% share in global demand. To enhance competitiveness, India needs to localise high-tech components, strengthen design capabilities through R&D investments, and forge strategic partnerships with global technology leaders, the government think tank said in a statement. As of FY23, India's electronics production stands at $101 billion, comprising $86 billion in finished goods and $15 billion in components manufacturing. During the same period, exports totalled $25 billion, reflecting India's growing role in the global electronics market. Regarding domestic value addition, the sector has contributed around 15 to 18% and generated approximately 1.3 million jobs. n a Business As Usual (BAU) scenario, projections indicate that India's electronics manufacturing could escalate to $278 billion by FY30. This forecast includes $253 billion from finished goods and $25 billion from components manufacturing. Employment generation is expected to grow substantially to around 3.4 million, with exports reaching $111 billion, the Aayog said. The think tank emphasised that India's ambition to become the third-largest global economy necessitates a more ambitious vision for its technology-driven sectors. With a conducive business environment and robust policy support, including fiscal incentives and non-fiscal interventions, India should aim to achieve $500 billion in electronics manufacturing by FY30,the report said. The report recommends strategic interventions across fiscal, financial, regulatory, and infrastructure domains to support this growth trajectory. These include promoting components and capital goods manufacturing, incentivising R&D and design, tariff rationalisation, skilling initiatives, facilitating technology transfers, and infrastructure development to foster a robust electronics manufacturing ecosystem in India. (Source: BusinessLine)

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