(MENAFN- IANS) New Delhi, July 19 (IANS) industry leaders on Friday said that the country must seize the opportunity to create a conducive environment for Global Value Chains (GVCs) to thrive, in order to build a large-scale and globally competitive Electronics manufacturing industry.
Reacting to NITI Aayog's latest report that envisions achieving a $500 billion target in electronics manufacturing by FY2030 and creating 60 lakh jobs, the industry leaders said that true growth potential lies in the global market.
“GVCs not only drive large-scale job creation but also build technology capabilities within the domestic industry. They bring in large-scale manufacturing, driving the scale of production, reducing costs, and enhancing competitiveness,” said Pankaj Mohindroo, Chairman, India Cellular and Electronics Association (ICEA).
As the country strives to increase its electronics production by three to four times in the next few years, integrating with GVCs will be key to boosting production and exports from India.
“While we have proven our capabilities by reaching $115 billion in electronics production, the next level of growth hinges on our ability to attract and integrate with GVCs,” said Mohindroo.
“We must seize the short window of opportunity to create a conducive environment for GVCs to thrive in India,” he added.
GVCs are critical in modern manufacturing, involving international collaboration across design, production, marketing, and distribution.
They represent 70 per cent of international trade, highlighting India's urgent need to enhance its participation, especially in electronics, semiconductors, automobiles, chemicals, and pharmaceuticals.
Electronics, in particular, is pivotal, with 75 per cent of its exports originating from GVCs.
India's electronics sector has experienced rapid growth, reaching $155 billion in FY23.
Production nearly doubled from $48 billion in FY17 to $101 billion in FY23, driven primarily by mobile phones, which now constitute 43 per cent of total electronics production.
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