New Delhi: As the country aspires to reach $500 billion electronics manufacturing by FY30 while creating 60 lakh jobs, the India Cellular and Electronics Association (ICEA) said on Tuesday it is keen to chart out a comprehensive strategy with the government to help the industry achieve this goal.
The electronics industry is currently at around $115 billion and global value chains (GVCs) will be key to boosting production and exports from the country, said Pankaj Mohindroo, ICEA Chairman.
Mohindroo said that the electronics industry needs to grow over 20 per cent compound annual growth rate (CAGR) to achieve the target of $500 billion by FY30, adding that the association seeks to have a presentation with Finance Minister Nirmala Sitharama on the elements that are essential for the industry to achieve the outlined vision of $500 billion by 2030.
GVCs not only drive large-scale job creation but also build technology capabilities within the domestic industry.
They bring in large-scale manufacturing, driving the scale of production, reducing costs, and enhancing competitiveness, according to Mohindroo.
While we have proven our capabilities by reaching $115 billion in electronics production, the next level of growth hinges on our ability to attract and integrate with GVCs, the ICEA Chairman said, adding that we must seize the short window of opportunity to create a conducive environment for GVCs to thrive in the country.
GVCs are critical in modern manufacturing, involving international collaboration across design, production, marketing, and distribution. Electronics, in particular, is pivotal, with 75 per cent of its exports originating from GVCs.
Electronics production nearly doubled from $48 billion in FY17 to $101 billion in FY23, driven primarily by mobile phones, which now constitute 43 per cent of total electronics production.
In the financial year 2023, India’s electronics sector recorded a significant value of exports, contributing a considerable share of 5.32 per cent to India’s total merchandise exports.
–IANS