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

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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.

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Published On : 22nd Mar, 2024

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