NITI Aayog to Unveil Strategic Report on Electronics Sector's Global Value Chain Ambitions

NITI Aayog will release a report on 'Electronics: Powering India's Participation in Global Value Chains' on July 18. The report outlines India's opportunities and challenges in the electronics sector and presents a plan for becoming a global leader in manufacturing.

NITI Aayog is scheduled to release a pivotal report entitled 'Electronics: Powering India's Participation in Global Value Chains' on July 18. This comprehensive analysis scrutinizes the opportunities and hurdles within India's burgeoning electronics sector, proposing a strategic roadmap to elevate the nation to a global manufacturing leader.

Currently, Global Value Chain (GVC) items constitute 70 percent of international trade, emphasizing the urgent necessity for India to bolster its GVC involvement, according to a press release. Targeting pivotal sectors like electronics, semiconductors, automobiles, chemicals, and pharmaceuticals, India aims to enhance its footprint in the GVC sphere.

The electronics sector holds particular significance, contributing nearly 80 percent of its exports through GVCs. In the fiscal year 2023, India's electronics exports marked substantial value, accounting for 5.32 percent of the country's total merchandise exports. This achievement highlights the sector's global competitiveness and its role in meeting international demand, thus boosting India's global electronics market stature.

Today, India's electronics industry predominantly focuses on the final assembly of electronic products. Although many brands and design firms are outsourcing assembly, testing, and packaging to Indian Electronic Manufacturing Services (EMS), the ecosystem for design and component manufacturing remains underdeveloped, notes the release. The manufacturing sector is crucial to India's aspirations of becoming a 'Viksit Bharat' (Developed India), which can be driven by accelerating the Make-in-India initiative and enhancing GVC participation.

Within this framework, NITI Aayog's forthcoming report will detail a strategic direction for India to emerge as a dominant force in electronics manufacturing.

(With inputs from agencies.)