NITI Aayog to Unveil Report on India's Electronics Sector and Global Value Chains

  • July 18, 2024, 12:57 a.m.

New Delhi: Tomorrow, on 18th July 2024, NITI Aayog is set to release a pivotal report titled “Electronics: Powering India’s Participation in Global Value Chains”. This highly anticipated report comes after extensive analysis of India’s electronics sector, aiming to chart a roadmap for the country to emerge as a global manufacturing hub in electronics.

The report underscores the critical importance of enhancing India's participation in Global Value Chains (GVCs), especially in sectors like electronics, semiconductors, automobiles, chemicals, and pharmaceuticals. These sectors are pivotal due to their significant role in global trade dynamics, where GVC items comprise 70% of international trade.

Highlighting the prominence of the electronics sector within GVCs, the report notes that nearly 80% of India's electronics exports are linked to these chains. In the fiscal year 2023, India's electronics sector demonstrated robust export performance, contributing 5.32% to the country's total merchandise exports. This performance not only showcases India's competitiveness but also its capacity to meet global demand, thus bolstering its position in the global electronics market.

Currently, India's electronics manufacturing largely involves the final assembly of electronic goods, with increasing outsourcing of assembly, testing, and packaging to Electronic Manufacturing Services (EMS) companies. However, the ecosystem for design and component manufacturing remains in its infancy, presenting opportunities for growth and development.

The forthcoming report by NITI Aayog aims to provide a comprehensive strategy for India's journey towards becoming a manufacturing powerhouse in the electronics sector. It will advocate for accelerating the Make-in-India initiative through deeper integration into Global Value Chains. This strategic approach is expected to leverage India's strengths, address challenges, and capitalize on emerging opportunities in the global electronics landscape.

As India positions itself to play a more significant role in GVCs, the insights and recommendations from the report are anticipated to guide policy formulation and industry initiatives, fostering a conducive environment for sustainable growth and innovation in the electronics sector.

Author : Rajdhani Delhi Representative

Rajdhani delhi representative

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