The NITI Aayog in a report on Thursday said that India should aim to reach $500 billion in electronics manufacturing by 2030, which would help create 6 million jobs in the country.
In a report titled ‘Electronics: Powering India’s Participation in Global Value Chains’, the NITI Aayog observed that the global electronics market, valued at $4.3 trillion, is dominated by countries like China, Taiwan, US, South Korea, Vietnam and Malaysia.
“India currently exports approximately $25 billion annually, representing less than 1 per cent of the global share despite 4 per cent share in global demand. To enhance competitiveness, India needs to localise high-tech components, strengthen design capabilities through R&D investments and forge strategic partnerships with global technology leaders,” the government think tank said in a statement issued on the report.
As of FY23, India’s electronics production stands at $101 billion. This comprises $86 billion in finished goods production and $15 billion in components manufacturing. The report stated that during the same period, exports totalled $25 billion, reflecting India’s increasing role in the global electronics market.
As regards domestic value addition, the sector has also contributed around 15 to 18 per cent and has generated approximately 1.3 million jobs.
“In a Business As Usual (BAU) scenario, projections indicate that India’s electronics manufacturing could escalate to $278 billion by FY30. This forecast includes $253 billion from finished goods and $25 billion from components manufacturing. Employment generation is expected to grow substantially to around 3.4 million, with exports reaching $111 billion,” the Aayog said.
The government think tank was of the view that India’s ambition to become the third-largest global economy would demand a more ambitious vision for its technology-driven sectors. “With a conducive business environment and robust policy support, including fiscal incentives and non-fiscal interventions, India should aim to achieve $500 billion in electronics manufacturing by value terms by FY30,” the report said.
The report recommends strategic interventions across fiscal, financial, regulatory and infrastructure domains to support this growth trajectory.
As per the report, these include promoting components and capital goods manufacturing, incentivising R&D and design, tariff rationalisation, skilling initiatives, facilitation of technology transfers and infrastructure development to foster a robust electronics manufacturing ecosystem in India.