(MENAFN- KNN India)
New Delhi, Jul 18 (KNN) In a strategic move to capitalise on shifting global supply chains, India's Electronics industry is urging the government to strengthen trade relations with the United States.
The initiative aims to position India as a prime alternative to China for American companies looking to relocate their manufacturing operations.
The Indian Cellular and Electronics Association (ICEA), representing major players like Apple, Foxconn, and Dixon, is spearheading this effort. ICEA Chairman Pankaj Mohindroo emphasised the urgency of the situation, stating, "India has a short window to capitalise on the shifting supply chain, with other nations also competing."
At the heart of this initiative is the Indo-US Task Force for Electronics, which is set to meet next month. This task force will be responsible for developing a roadmap to boost electronics trade between the two countries from its current USD 12 billion to an ambitious USD 100 billion over the next decade.
Chaired by former Trai chairman RS Sharma and co-chaired by Apple India Managing Director Virat Bhatia, the task force will present its recommendations to various government bodies, including the Prime Minister's Office, underlining the high-level attention this initiative is receiving.
The ICEA is taking a bold stance, advocating for the US government to encourage its companies to relocate at least 50 per cent of their global production to India. This move is seen as a way to leverage the strong strategic partnership between the two nations and to cement India's position in the global electronics manufacturing landscape.
The focus of this trade push is on key products that form the backbone of the modern electronics industry. These include laptops, tablets, smartphones, and lithium-ion batteries, areas where India sees significant potential for growth and innovation.
The timing of this initiative is crucial, as evidenced by the recent growth in electronics trade between India and the US. Since 2018, when the US imposed tariffs on Chinese electronics, trade between India and the US in this sector has grown by over 260 per cent. This dramatic increase highlights the potential for further expansion and the opportunity that lies before India.
Industry experts, including Josh Foulger, former country head of Foxconn arm Bharat FIH, stress the importance of this cooperation. Foulger noted, "The American global value chains are exploring the China+1 option, although significant shifts away from China have not materialised yet." This observation underscores the potential for India to position itself as a viable alternative in the global supply chain.
(KNN Bureau)
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