Centre targets $500 billion electronics manufacturing by 2030

New Delhi: The government has set a target of reaching $500 billion worth of electronics production in the country by 2030. According to a report published by Niti Aayog, a $500 billion electronics manufacturing sector would create 5-6 million jobs, and lead to electronics exports totalling $240 billion.

The current value of India’s electronics production stands at an impressive $101 billion as of FY23. This comprises $86 billion in finished goods production and $15 billion in components manufacturing. During the same period, exports totalled $25 billion, reflecting India’s increasing role in the global electronics market. The sector currently generates 1.3 million jobs.

In order to achieve this target, the Niti Aayog report suggests that India should be part of the Global Value Chains (GVCs), which the report says are critical in modern manufacturing, involving international collaboration across design, production, marketing and distribution.

“They represent 70% 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% of its exports originating from GVCs,” says the report titled Electronics: Powering India’s Participation in Global Value Chain.