NITI Aayog launched the report titled 'Electronics: Powering India's Participation in Global Value Chains'. The Report extensively analyses India's electronics sector, emphasizing its potential and challenges. It also outlines specific interventions needed for India to emerge as a global manufacturing hub for electronics. India's electronics sector has experienced rapid growth, reaching USD 155 billion in FY23.
Production nearly doubled from USD 48 billion in FY17 to USD 101 billion in FY23, driven primarily by mobile phones, which now constitute 43% of total electronics production.
India has significantly reduced its reliance on smartphone imports, now manufacturing 99% domestically. The global electronics market, valued at USD 4.3 trillion, is dominated by countries like China, Taiwan, USA, South Korea, Vietnam and Malaysia. India currently exports approximately USD 25 billion annually, representing less than 1% of the global share despite a 4% share in global demand. The current value of India's electronics production stands impressively at USD 101 billion as of FY23.
This figure comprises USD 86 billion in finished goods production and USD 15 billion in components manufacturing. During the same period, exports totalled ~USD 25 billion, reflecting India's increasing role in the global electronics market. As regards domestic value addition, the sector has also contributed ranging between 15% to 18%, and has generated approximately 1.3 million jobs.
With a conducive business environment and robust policy support, including fiscal incentives and non-fiscal interventions, India should aim to achieve USD 500 billion in electronics manufacturing by value terms by FY 30. This ambitious target comprises USD 350 billion from finished goods manufacturing and USD 150 billion from components manufacturing.
Such growth is projected to create employment for an estimated 5.5 million to 6 million people. Electronics exports are expected to reach USD 240 billion and domestic value addition to increase to more than 35%.
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