India must aim for US$ 500 billion in electronics manufacturing by 2030: NITI Aayog

India should target US$ 500 billion in domestic electronics manufacturing by 2030, according to a NITI Aayog report that suggests specific policy measures such as tariff rationalisation and skilling. The central government’s think tank noted that growth in electronics manufacturing could create approximately 6 million jobs. The report emphasised the importance of Global Value Chains (GVCs) in modern manufacturing, involving international collaboration across design, production, marketing, and distribution. GVCs account for 70% of international trade, underscoring India’s need to enhance its participation in electronics, semiconductors, automobiles, chemicals, and pharmaceuticals, with 75% of electronics exports originating from GVCs.

India’s electronics sector has seen significant growth, reaching US$ 155 billion in FY23, with production nearly doubling from US$ 48 billion in FY17 to US$ 101 billion in FY23, driven largely by mobile phones. India now manufactures 99% of its smartphones domestically. The report calls for measures to promote components and capital goods manufacturing, incentivise research, and develop infrastructure. Despite progress through initiatives like Make in India and Digital India, India’s electronics market, at 4% of the global market, remains focused on assembly with limited design and component manufacturing capabilities. Without additional measures, the sector is expected to grow to US$ 278 billion by 2029-30, generating around 3.4 million jobs and reaching US$ 111 billion in exports.

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