India aiming at USD 120 billion of electronics exports by 2026

India is planning for USD 120 billion of electronics exports by 2026.

Mr. Rajeev Chandrasekhar, Minister of State for Electronics & Information Technology and Skill Development & Entrepreneurship today said the government is laser focused on achieving the target of 300 billion USD electronic production by 2026.

'And for this, we have always emphasized on strengthening our domestic manufacturing ecosystem to make India more resilient to supply chain disruptions. Our aim is to emerge as a reliable and trusted partner in global value chains.” he said.

He launched a report titled as ‘Globalize to Localize: Exporting at Scale and Deepening the Ecosystem are Vital to Higher Domestic Value Addition’ in New Delhi today.

The report prepared by India Council for Research on International Economic Relations (ICRIER), in collaboration with India Cellular and Electronics Association (ICEA) explores how India can achieve electronics production target of US$300 billion

Launching the report, he said that it is very timely and will help the government identify the challenges that are to be met and the strategies that are to be adopted to achieve this target.

The Minister said that India has succeeded in systematically building a framework and a strategy that has clearly outlined our goals of a 300 bn electronics manufacturing ecosystem with a 120 bn dollars of exports by 2026.

Talking about the journey of electronics sector in India in last some years, the Minister said that electronics in India has travelled a long way since 2014.

"We were, in 2014, a country that was increasingly dependent not just on petroleum imports but also on electronics imports. Systematically Prime Minister Narendra Modi over the years has built back an electronics sector. Today we are, as a consequence of policies of government led by Prime Minister Narendra Modi, a 76 bn dollar manufacturing economy with 16 bn dollar of exports, with a target of 21 to 25 bn dollars of exports in next year. But most importantly by 2026, we have clearly laid out goal of 300 bn dollar manufacturing with a 120 bn dollar of exports. That strategy talks about broadening and deepening of the electronics ecosystem.

This report by ICRIA, the Minister said, is a very important and interesting element that describes what our strategy will be for next few years.

Highlighting the shift in global value chains in recent years, Mr. Rajeev Chandrasekhar said that post-COVID the value chains of electronics are undergoing deep tectonic irreversible changes. It presents to India, the current momentum and opportunity which is explained by the 120 bn dollars export target that India has for 2026.

“Our study finds that China and Vietnam have adopted the mantra of ‘first globalize, then localize’, which means in the initial years they were determined to achieve global scale in exports, and then shifted their emphasis to greater use of local contents,” said Dr. Deepak Mishra, Director and CE of ICRIER and the lead author of the report.

The report, therefore, recommends a sequential approach that can put India’s exports in the same trajectory as China and Vietnam.

The immediate goal should be to export at scale to global markets (globalize), and the subsequent objective should be to increase the share of local content (localize).

The report suggests several steps and policies needed for deepening the broader electronics ecosystem within India. Additionally, policies such as Gati Shakti will also help increase India’s competitiveness.

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