India bids to increase share in global value chains in electronics

04th November 2021
India  bids to increase share in global value chains in electronics
The Minister of State for Electronics and Information Technology, Rajeev Chandrasekhar ( inset)speaking at the release of the vision document: Increasing India’s Electronics Exports and share in Global Value Chains (GVCs), in New Delhi on November 2, 2021.

November 4 2021: The Ministry of Electronics & Information Technology  has released Volume-I of  a Vision Document on “Increasing India’s Electronics Exports and Share in GVCs”. This comes as a part of MeiTY’s Vision 1000 Days that sets a target of achieving $1 Trillion Digital Economy for Atma Nirbhar Bharat.
The Vision document (Volume-I) focuses on the opportunities and key inputs to increase India’s share in the Global Value Chain and build large-scale manufacturing capabilities to achieve a substantial share in global electronics export. It has been prepared by Indian Cellular Electronics Association (ICEA) in consultation with the industry. The Vision Document is a call to action which analyses the challenges and outlines key success factors for increasing electronics exports, while benchmarking against competing nations. It makes recommendations to increase scale, competitiveness and domestic value addition over the next 1000 days.
Speaking on the occasion, IT Minister of State,Rajeev Chandrasekhar said  the  post covid world represents the coming together of policy making, investments, jobs and a strong preference for trust in Global Value Chains. These together present an unprecedented - never before opportunity for India in the eElectronics Sector. He  said that the industry needs to focus on expanding product categories which can serve new markets and new types of consumers. “We are in a world where hardware plays less role in innovation and software plays more significant role. In this scenario India has the ability to use its strength in electronics design, systems design along with electronics manufacturing.”
The push for the Electronic Software Development  and Manufacturing (ESDM) sector  has seen India emerging as the 2nd largest manufacturer of mobile handsets in the world in volume terms, producing 30 crore ( 300 million)  handsets (in 2020-21) as against 6 crore ( 60 million)  handsets in 2014-15.
Over 200 units are manufacturing cellular mobile phones and parts in the country which is up from only 2 units in 2014. Production of mobile handsets has grown from INR 19,000 crore in 2014-15 to 2,20,000 crore in 2020-21. This has given a significant boost to the sector and to the vision of achieving self reliance under the Atma Nirbhar Bharat programe.
The Vision Document is the first of a two-part series. The second volume will present product-wise strategies and forecasts as part of the campaign to build a US$1 trillion Digital Economy, in pursuit of reachingUS$5 trillion GDP. The document makes recommendations on short-term (1-4 years) and long-term (5-10 years) strategies to increase electronics exports from India, shift of electronics manufacturing ecosystem investments, and expand exports by increasing competitiveness and scale. The Document critically analyses the impact of tariffs on inputs on India’s competitiveness, and makes specific recommendations in view of the goals set by the Prime Minister. The Vision Document also emphasises on the strategies to build “domestic champions “and the need for linking their products with Lead Firms and global value chains ( GVCs). It seeks to protect domestic champions from unfair trade practices, while requesting policy support in the areas of financing and design development. It identifies key electronic products, namely mobile phones, IT hardware, hearables / wearables etc, which provide the highest potential for exports, in view of massive global demand for these products.
Vision Document here
7-page summary here