Boosting Electronic Production by 2026
Source : PIB
GS III : Indian Economy
What is discussed under Boosting Electronic Production by 2026?
- About the report
- About ICEA
Why in News ?
Minister of State for Electronics & Information Technology and Skill Development & Entrepreneurship, launched a report titled as ‘Globalise to Localise: Exporting at Scale and Deepening the Ecosystem are Vital to Higher Domestic Value Addition’.
Key Facts
- The report prepared by India Council for Research on International Economic Relations (ICRIER), in collaboration with India Cellular and
Source : PIB Electronics Association (ICEA) explores how India can achieve electronics production target of US$300 billion and exports of US$120 by 2025-26.
- The Government is laser focused on achieving the target of 300 billion USD electronic production by 2026.
- Always emphasised on strengthening our domestic manufacturing ecosystem to make India more resilient to supply chain disruptions.
- Aim is to emerge as a reliable and trusted partner in Global value chains.
Electronics as a sector has jumped to the 6th largest export from India this year. Mobile phones constitute the single largest component of electronics exports from India.
Globalise to Localise
- Report examines the empirical relationship between exports and the share of domestic value addition in successful exporting nations.
- It finds that the two variables are negatively correlated in the short-run, but exhibit positive correlation in the medium-term.
- Comparison : China and Vietnam have adopted the mantra of ‘first globalise, 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.
- Recommendation
- Immediate goal should be to export at scale to global markets (globalise), and the subsequent objective should be to increase the share of local content (localise).
- Policies such as Gati Shakti will also help increase India’s competitiveness.
- Create a competitive domestic ecosystem of ancillary suppliers through
- Technology upgradation programmes
- Holding sourcing fairs
- Introducing supporting industry development programmes.
About India Cellular and Electronics Association (ICEA)
- ICEA is the apex industry body for the mobile and electronics industry comprising manufacturers, brand owners, technology providers, VAS application & solution providers, distributors, and retail chains of mobile handsets and electronics.
- ICEA is committed to carrying forward its vision of building Indian manufacturing and design in verticals other than mobile handsets while consolidating the gains made in the mobile handset and components industry.
- ICEA is entirely devoted to improving the competitiveness and growth of the industry by closely working with the Government’s ministries to create a robust, legal, and ethical electronics industry, thereby creating an innovative market environment in the country.
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