India’s electronics sector has been a key driver of the country’s integration into global value chains (GVCs) in recent years, highlighting its strategic efforts to expand its role in the global economic framework. With a manufacturing output that reached over USD 16 trillion in 2022, India has emerged as a manufacturing powerhouse, showcasing tremendous growth in the electronics industry with a current valuation of USD 155 billion.
To support this growth, the Indian government has implemented various initiatives such as Make in India, Digital India, the Production Linked Incentive (PLI) scheme, and the Phased Manufacturing Program (PMP). These programs aim to boost domestic production, reduce reliance on imports, and attract foreign investment. The success of these initiatives is evident as the electronics sector, particularly mobile phones, has experienced explosive growth and is poised to further increase its global market share.
Global Value Chains (GVCs) have played a significant role in revolutionizing manufacturing, particularly in the electronics industry. India’s participation in GVCs is increasing, with the sector’s strong export record contributing substantially to India’s overall product exports. The country is now focusing on strengthening its capabilities across the entire value chain, from research and development to final manufacturing and export, to further enhance its integration with GVCs.
India’s recent surge in electronics product exports, driven by initiatives like Make in India and the Electronics Development Fund (EDF), has propelled the country to among the top 3 globally in the electronics sector during the first quarter of 2024-25. Prime Minister Narendra Modi and Union Minister for Electronics & Information Technology, Shri Ashwini Vaishnaw, have both lauded these achievements, highlighting the impact of targeted government policies and the innovative spirit of India’s youth in driving the sector’s growth.
In order to sustain this growth and become more self-sufficient and globally competitive, India is focusing on strengthening its design capabilities, localizing high-tech components, and investing in research and development. Strategic partnerships between academic institutions and industry, along with investments in infrastructure and logistics, are crucial for further supporting the growth of the electronics sector and ensuring India’s position as a global leader in electronics manufacturing.
With ongoing reforms and initiatives like Make in India, India is on a trajectory towards increased self-reliance, global competitiveness, and economic prosperity in the electronics sector. The collaborative efforts of the government, industry, and academia will be instrumental in propelling India towards a future of significant job creation, economic benefits, and a prominent role in the global electronics landscape.
