NITI Aayog has set an ambitious target of achieving $500 billion in electronics manufacturing by the financial year 2029-30 (FY30). This strategic move is expected to generate a massive 5.5 to 6 million direct jobs in the country, bolstering India’s position as a global electronics hub.
A Blueprint for Electronics Dominance
The government think tank underlined in its paper, “Electronics: Powering India’s Participation in Global Value Chains,” the necessity of a comprehensive strategy to accomplish this challenging objective. To take India’s electronics industry to new heights, the research recommends a calculated mix of financial assistance, regulatory changes, infrastructural development, and tax incentives.
Even if the country of India has made great progress in the production of mobile phones, NITI Aayog emphasizes the need of diversifying into other markets including wearables, IoT devices, and automotive electronics. The research also emphasizes how important it is to fortify the ecosystem that supports domestic capital goods manufacture.
Overcoming Challenges and Capturing Opportunities
India’s electronics sector is expanding, although its proportion of the global market is still only 4%. The manufacturing environment in the nation has mostly concentrated on assembly, with little capacity for component manufacture or design.
NITI Aayog suggests stepping up research and development (R&D) efforts, streamlining tariffs, and funding skill-building initiatives in order to address these issues. The research underscores the significance of enabling knowledge transfer and enhancing infrastructure in order to establish a favorable atmosphere for the production of electronics.
Leveraging the Growth Momentum
India’s electronics sector has witnessed remarkable growth, with production doubling from $48 billion in FY17 to $101 billion in FY23. Mobile phone manufacturing alone contributes to 43% of the total electronics production. Building on this momentum, NITI Aayog aims to position India as a global leader in electronics manufacturing by capitalizing on emerging opportunities and integrating deeper into global value chains.
The government’s recent initiatives to encourage electronics manufacturing, including outreach to industry leaders like Apple, further underscore the commitment to creating a favorable ecosystem for the sector’s growth.
By achieving the $500 billion target, India can not only generate substantial employment opportunities but also strengthen its position in the global technology landscape.
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