(MENAFN- AsiaNet News)

India is rapidly strengthening its global electronics footprint, driven by an ambitious mix of free trade agreements (FTAs), targeted policy interventions, and rising investor confidence, industry leaders told ANI.

Shiva Srinivasan, MD, MEL Systems & Services Ltd, said India's ongoing trade negotiations and domestic policy reforms are reshaping the country's electronics export potential. "The ongoing FTAs will expand the market for us. The government investment in semiconductor parks, logistics modernisations and electronics clusters will help the industry," he told ANI, referring to India's negotiations with the EU, ASEAN and Latin America. These developments, he said, will help position India as a rising force in the global value chain.

Ambitious Export Projections

Electronics exports are projected to see a major jump. Srinivasan noted that outbound shipments are expected to increase to 120 billion dollars by March 2026, up from 38 billion dollars in the previous year. The long-term outlook remains even more ambitious, with the government aiming higher. "I think the target by 2030 is to be 500 billion." Citing official data, he said domestic electronics production has multiplied six-fold in a decade to 11.3 lakh crore rupees, while exports have risen eight-fold to 3.27 lakh crore rupees since 2014-15. This expansion, he said, reflects India's accelerating economic momentum. "A combination of the growth in the country, the overall ecosystem is good," he added.

Shift Towards Manufacturing-Specific Policies

A significant shift, according to Srinivasan, is the government's sharper focus on manufacturing-specific measures. "After a long time, sector-specific investments and policies are being brought by the government. Earlier, it was not so much; the electronic sector, per se, did not have so much of it; it was all software and other services," he said. With new schemes accelerating production, he added, "so I think as a combination it is working out well."

Addressing Industry Challenges

However, he also flagged challenges, including reliance on imports of rare earth minerals and gold compounds, and higher costs compared to China, Vietnam and Mexico due to logistics and compliance burdens. Still, he said, ongoing reforms, skilling programmes and industry-government coordination are helping mitigate these barriers.

Entering a Defining Phase

Electronics and Computer Software Export Promotion Council (ESC) Executive Director Gurmeet Singh said the sector is now entering a defining phase. "The electronics industry is looking forward, and we are all geared up to replicate our IT success story into electronics manufacturing and exports," he told ANI.

Calling the moment "timely and opportune," Singh said India is moving from an assembly-led model to deeper value addition. Government incentives, he added, have "turned heads toward manufacturing in the Indian electronics industry."

Evolving Trade Framework

Highlighting India's evolving trade framework, Singh said FTAs, including the recent India-UK pact, are being supplemented by extensive stakeholder outreach. "The government is so proactive that we are reaching out to the last mile, telling stakeholders how they can make use of these new opportunities," he said.

He also welcomed progress on long-pending mutual recognition agreements, calling them "critical for market penetration and expanding India's electronics footprint globally."

With growing capacity, improving competitiveness and expanding global opportunities, India's electronics sector is positioning itself for a far larger role in global supply chains. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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