India To Aim For $500 Bn In Electronics Manufacturing By FY30: Niti Aayog

India should aim for USD 500 billion in electronics manufacturing by FY30, backed by a supportive business environment, fiscal incentives and non-fiscal interventions, Government think tank Niti Aayog said in its latest report. The report, titled ‘Electronics: Powering India’s Participation in Global Value Chains,' also highlighted the sector’s potential and challenges.

India needs to localise high-tech components, bolster design capabilities through research and development investments along with forming strategic partnerships with global tech giants, the report mentioned.

In a Business As Usual (BAU) scenario, the projections indicate that India’s electronics manufacturing could reach up to USD 278 billion by FY30, which includes USD 253 billion from finished goods and the rest from component manufacturing. Employment is likely to rise to around 3.4 million.

The report suggested strategic interventions across fiscal, financial, regulatory and infrastructure domains to support the growth trajectory. These included promoting components and capital goods manufacturing, tariff rationalisation, and facilitating technology transfers.

India’s electronics sector has grown rapidly, reaching USD 155 billion in FY23. Production almost doubled from USD 48 billion in FY17 to USD 101 billion in FY23, mostly driven by mobile phones, which now account for 43 per cent of total electronics production. The electronics productions included USD 86 billion in finished goods and USD 15 billion in component manufacturing, as per the report.

Make in India and Digital India initiatives, along with better infrastructure have provided a boost in domestic manufacturing and attracted foreign investment. Despite these advances, India’s electronics market represents just 4 per cent of the global market, which is led by countries such as Taiwan, China, South Korea among others, as per the report.