ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

A+| A| A-

Can India Emerge as a Global Electronics Hub?

A Critical Assessment

Against the challenges of increasing domestic production and exports and positioning as a global hub for electronics, it is argued that developing dynamic firm-specific capabilities is vital for keeping pace with technology and skill upgradation. Expanding technological capability of domestic firms requires building design capabilities and accelerating domestic research and development at firm level. While ationalisation of import duties on raw materials and components can induce cost competitiveness, engaging domestic firms into strategic partnership with lead firms in electronics GVCs and OEMs is necessary. 

The authors acknowledge the comments of the anonymous referee which has significantly improved our analysis and presentation. Data support provided by Charulika Sharma, PhD scholar, IIFT is also gratefully acknowledged.

The views presented in this article are authors’ personal views and do not reflect those of the IIFT. The usual disclaimers apply. 

With industry-wide applications, the electronics industry is defining the manufacturing competitiveness of a country. Driven by high technology, the organisation of this critical industry is spread across many countries/regions and exhibits a highly globalised value chain (GVC). Post-COVID-19, disruptions in the supply chain adversely aff­ected the production and price of end- user industries like mobile phones, automobiles, information and communications technology (ICT) products, consumer electronics, and industrial electronics. Further, trade disputes and geopolitical developments pro­mpted industrial policy interventions for “reshoring,” “nearshoring,” and “friend-shoring” to mitigate the observed risks. With countries aiming at resilient and diversified supply chains, India is positioning itself as a global hub for electronics manufacturing. The National Policy on Electronics  2019 outlines the approach for developing domestic production in the entire value chain of electronics system design and manufacturing (ESDM), following which many initiatives like production-linked incentive (PLI), Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and electronics manufacturing cluster (EMC) 2.0 were introduced.

Dear Reader,

To continue reading, become a subscriber.

Explore our attractive subscription offers.

Click here

Or

To gain instant access to this article (download).


Pay
INR 59

(Readers in India)


Pay
$ 6

(Readers outside India)

Published On : 22nd Mar, 2024

Support Us

Your Support will ensure EPW’s financial viability and sustainability.

The EPW produces independent and public-spirited scholarship and analyses of contemporary affairs every week. EPW is one of the few publications that keep alive the spirit of intellectual inquiry in the Indian media.

Often described as a publication with a “social conscience,” EPW has never shied away from taking strong editorial positions. Our publication is free from political pressure, or commercial interests. Our editorial independence is our pride.

We rely on your support to continue the endeavour of highlighting the challenges faced by the disadvantaged, writings from the margins, and scholarship on the most pertinent issues that concern contemporary Indian society.

Every contribution is valuable for our future.