New Delhi [India], July 19 : India's electronic produce has surged to 3 per cent of GDP in 2023-24, highlighted in the July 2024, monthly bulletin of the Reserve Bank of India (RBI).
The bulletin also highlighted that the value of electronics produced has surged from USD 37 bn in 2015-16 to USD 115 bn in 2023-24.
"India's efforts to transform into a manufacturing powerhouse are already bearing fruit - electronics manufacturing. The value of electronics produced rose from USD 37 bn to USD 115 bn (3 per cent of GDP) between 2015-16 and 2023-24" said the report.
The RBI also added that the near term objective of India is to triple electronic production by 2025-26. Currently, India's production of electronics accounts for 3 per cent of the global total, with this share growing faster than any other country.
In 2023-24, India exported USD 15.6 billion of mobile phones and USD 1.5 billion in April 2024. Apple sources about one in seven of its iPhones from India, double what it did a year ago. Samsung, a South Korean rival, has its largest phone-making facility in India.
Niti Aayog also in its report released on Thursday July 18th, highlighted that global electronics market is very large and estimated at USD 4.3 trillion; China is the dominant player with around 60 per cent share, Vietnam grew fastest in the past decade, but India's electronic production is also surging rapidly. Currently, India's electronics market is primarily driven by mobile phones, which now make up to 43 per cent of total electronics production. The global electronics market, worth USD 4.3 trillion, is led by countries such as China, Taiwan, the USA, South Korea, Vietnam, and Malaysia.
The RBI in its report also noted that the expanding manufacturing footprint is key to boosting the share of India's exports from the current level of 2.4 per cent of world exports to at least 5 per cent, goods and services taken together.
It added that on the back of exports of close to USD 780 billion in 2023-24 and a cumulative rate of expansion of 10.2 per cent in the first quarter, India is better prepared in 2024-25 to achieve exports of over USD 800 billion.
In the recent times, India has vastly reduced its dependence on smartphone imports, now manufacturing 99 per cent domestically. Government initiatives like Make in India and Digital India, along with improved infrastructure and business ease, backed by various incentives, have spurred domestic manufacturing and attracted foreign investment.
Despite these advances, India's electronics market is relatively small, representing just 3.3 per cent of the global market. The focus has mainly been on assembly, with limited capabilities in design and component manufacturing.
India needs to localize high-tech components, bolster design capabilities through R&D investments, and form strategic partnerships with global tech leaders.
Niti Aayog also recommended the industry to promote skill, industrial infra, innovation & research and foster conducive ecosystem for sustainable growth of the electronic manufacturing in India.
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