Industry leaders stated on Friday that in order to develop a massive and internationally competitive electronics manufacturing sector, the nation needs to take advantage of the chance to foster the growth of Global Value Chains (GVCs).
The leaders of the sector responded to NITI Aayog’s most recent study by stating that real development potential is found in the worldwide market. The research aims to create 60 lakh jobs and reach a $500 billion target in electronics manufacturing by FY2030.
“GVCs not only stimulate the creation of significant jobs but also enhance local industry’s technological skills. Large-scale manufacturing is brought in by them, which expands output, lowers prices, and boosts competitiveness, according to Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA).
Integrating with GVCs will be essential to increasing output and exports from India as the nation aims to raise its electronics production by three to four times in the coming years.
The next stage of expansion, according to Mohindroo, “relies on our ability to attract and integrate with GVCs, even though we have proven our capabilities by reaching $115 billion in electronics production.”
He continued, “We need to take advantage of this brief window of opportunity to establish an environment that will allow GVCs to flourish in India.”
GVCs are essential to contemporary manufacturing, which involves cross-border cooperation in the areas of distribution, marketing, production, and design.
Since they account for 70% of global trade, it is imperative that India increase its involvement, particularly in the areas of electronics, semiconductors, cars, chemicals, and pharmaceuticals.
Especially important is electronics, which gets 75% of its exports from GVCs.
India’s electronics industry grew quickly, reaching $155 billion in FY23.
Production increased to $101 billion in FY23 from $48 billion in FY17, almost doubling as a result of the rise in mobile phone sales, which now account for 43% of all electronics produced.
