ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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India’s Electronics Manufacturing Sector

Getting the Diagnosis Right

Smitha Francis (smithafrancis@gmail.com) is a consultant at the Institute for Studies in Industrial Development, New Delhi. 

The Indian electronics industry’s high dependence on imports can be directly linked to trade and investment policy liberalisation, in the absence of vertical industrial policy measures to improve productivity and capabilities. With the failure of passive industrial policies oriented towards attracting foreign direct investment, growth in domestic electronics manufacturing will have to come from a comprehensive policy approach encompassing trade, FDI, technology, taxation, infrastructure development, environmental protection, and education and skill development. Apart from significantly increasing the public fund outlay for research and development, such an industrial policy intervention must subsidise the cost of commercialising new innovations and expand the market for domestic electronics products by interlinking the demands of upstream industries with downstream manufacturers through incentives.

The author would like to acknowledge the support provided by the Institute for Studies in Industrial Development for carrying out an earlier study on the impact of trade liberalisation on the electronics industry.

Updated On : 30th Aug, 2018

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