Aims to accelerate Make-in-India by engaging in Global Value Chains
Manufacturing sector to play a crucial role in journey towards Viksit Bharat
Posted On: 17 JUL 2024 2:59PM by PIB Delhi
NITI Aayog will unveil its report titled “Electronics: Powering India’s Participation in Global Value Chains” tomorrow on 18 July, 2024. This report is the outcome of extensive analysis of India’s electronics sector including its scopes and challenges. The report lays down the roadmap for the country to become a global manufacturing hub in electronics manufacturing.
In the current scenario, 70% of international trade comprises Global Value Chain (GVC) items emphasizing the critical need for India to enhance its GVC participation. This can be achieved by prioritizing sectors such as electronics, semiconductors, automobiles, chemicals, and pharmaceuticals, which play a significant role in the GVC landscape. Within GVCs, the electronics sector holds a significant position as nearly 80% of electronics exports come from GVCs.
In the financial year 2023, India’s electronics sector recorded a significant value of exports, contributing a considerable share of 5.32% to India’s total merchandise exports. The sector’s export performance highlights its competitiveness in the global market and its ability to capitalize 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.
Presently, India’s electronics manufacturing primarily involves the final assembly of electronic goods. While brands and design firms have started increasingly 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 Make-in-India by engaging in Global Value Chains. With this perspective, NITI Aayog will release a comprehensive report on the subject suggesting a roadmap for country for becoming manufacturing powerhouse in the electronics sector.
