India Urged to Harness Global Value Chains for Electronics Manufacturing Growth
Friday, 19 July 2024, 10:27 IST
Industry leaders are calling for India to leverage Global Value Chains (GVCs) to drive the next wave of growth in electronics manufacturing. According to recent insights, tapping into GVCs is essential for India to build a large-scale, globally competitive electronics sector and achieve ambitious targets.
The latest industry report sets a goal of reaching $500 billion in electronics manufacturing by FY2030 and creating 6 million jobs. To achieve these objectives, experts emphasize the importance of integrating with GVCs, which can drive large-scale job creation and build domestic technology capabilities.
Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), highlighted that GVCs are crucial for large-scale manufacturing, cost reduction, and enhanced competitiveness. “GVCs not only foster substantial job creation but also bolster technology development within the domestic industry”, Mohindroo stated. He stressed that India’s ability to attract and integrate with GVCs will be pivotal in boosting both production and exports.
India’s electronics production has seen significant growth, reaching $115 billion. However, to progress to the next level, industry leaders argue that integrating with GVCs is vital. “We must act swiftly to create a conducive environment for GVCs to thrive in India”, Mohindroo urged.
GVCs are integral to modern manufacturing, encompassing international collaboration in design, production, marketing, and distribution. They account for 70% of international trade, underscoring the need for India to enhance its participation, particularly in electronics, semiconductors, automobiles, chemicals, and pharmaceuticals.
The electronics sector, having grown to $155 billion in FY23, shows promising expansion. Production nearly doubled from $48 billion in FY17 to $101 billion in FY23, with mobile phones comprising 43% of total production.
The latest industry report sets a goal of reaching $500 billion in electronics manufacturing by FY2030 and creating 6 million jobs. To achieve these objectives, experts emphasize the importance of integrating with GVCs, which can drive large-scale job creation and build domestic technology capabilities.
Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), highlighted that GVCs are crucial for large-scale manufacturing, cost reduction, and enhanced competitiveness. “GVCs not only foster substantial job creation but also bolster technology development within the domestic industry”, Mohindroo stated. He stressed that India’s ability to attract and integrate with GVCs will be pivotal in boosting both production and exports.
India’s electronics production has seen significant growth, reaching $115 billion. However, to progress to the next level, industry leaders argue that integrating with GVCs is vital. “We must act swiftly to create a conducive environment for GVCs to thrive in India”, Mohindroo urged.
GVCs are integral to modern manufacturing, encompassing international collaboration in design, production, marketing, and distribution. They account for 70% of international trade, underscoring the need for India to enhance its participation, particularly in electronics, semiconductors, automobiles, chemicals, and pharmaceuticals.
The electronics sector, having grown to $155 billion in FY23, shows promising expansion. Production nearly doubled from $48 billion in FY17 to $101 billion in FY23, with mobile phones comprising 43% of total production.
