India choose electronics manufacturing as its upcoming major export industry

According to a government estimate for selected major commodities, electronics export from India has surpassed the total quantity of ready-made clothing to become the 6th largest export commodity group. Indian textiles have always been exported, significantly increasing the gross domestic product (GDP).

Prime Minister Mr. Narendra Modi mentioned during the India Mobile Congress 2022 held in October last year that new India will not remain as a mere consumer of technology, but India will significant role in the development and implementation of that technology. He further mentioned how India has come a long way from exporting zero mobile phones in 2014 to becoming a mobile phone exporting country worth thousands of crores. According to official data, the growth in the export of electronic goods during 2022-23 rose from US$ 15.66 billion to US$ 23.57 billion. It further depicted that India has almost 120 crore mobile connections among which a significant part are smartphones.

The demand for these goods boosted in 2016 when the cost of per GB data became as low as Rs. 10. It contributed to making India a global leader in cheap internet accessibility and penetration. The Indian government declared the Phased Manufacturing Programme (PMP) in May, 2017 to promote the domestic production of mobile handsets. It supported to build a robust indigenous mobile manufacturing ecosystem in India and incentivized large-scale manufacturing and contributed in encouraging companies to move towards manufacturing from imports.

Today the top employment generators in India count telecom and allied industries as top sectors. According to official data, India has now become the world’s second-largest mobile phone producer. The central government is aiming at increasing the manufacturing capacity of electronics to US$ 293.44 billion (Rs. 24 lakh crore) by 2025-26 The data also depicted a reduction in imports during Q1 of 2021-22 at US$$ 73.36 million (Rs. 600 crore) from US$ 379.02 million (Rs. 3,100 crore) during the same period in 2020-21.

The government launched Production Linked Incentive (PLI) scheme in various sectors including electronic goods to contribute towards the global competitiveness of Indian manufacturers, attract investments, enhance exports, integrate India into the global supply chain and reduce dependency on imports.             

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.