Software plays more significant role in electronics, says Chandrasekhar
The electronics manufacturers, with potential to be a US$300 billion industry by 2025, need to focus on expanding product categories which can serve new markets and new types of consumers, Rajeev Chandrasekhar, Minister of State, Ministry of Electronics & IT, said at the release of Vision Document (Volume-I) on “Increasing India’s Electronics Exports and Share in GVCs”.
“We are in a world where hardware plays less role in innovation and software plays more significant role. In this scenario, India has the ability to use its strength in electronics design, systems design along with electronics manufacturing,” he stressed.
The post-Covid world represents coming together of many things and elements including the renewed confidence under visionary leadership of Prime Minister Narendra Modi, policy making, investments, jobs and a strong preference for trust in Global Value Chains (GVCs), he elaborated. “These together present an unprecedented, never before opportunity for India in Electronics Sector.”
Commenting on collaboration with industry in realizing the vision, Chandrasekhar assured, “We will approach the industry as a partner and will fully support it in its efforts to increase the overall competitiveness of the economy.”
Production of mobile handsets has grown from Rs.19,000 crore in 2014-15 to Rs.220,000 crore in 2020-21, he pointed out. “This has given a significant boost to the sector.”
The Vision Document, released on 2 Nov 2021, is the first of a two-part series. The second volume will present product-wise strategies and forecasts as part of the campaign to build a US$1 trillion Digital Economy, in pursuit of reaching US$5 trillion GDP.
The Vision Document makes recommendations on short-term (1-4 years) and long-term (5-10 years) strategies to increase electronics exports from India, shift of electronics manufacturing ecosystem investments and expand exports by increasing competitiveness and scale.
The Vision Document also emphasises on the strategies to build Domestic Champions and the need for linking their products with Lead Firms and GVCs. It seeks to protect Domestic Champions from unfair trade practices, while requesting policy support in the areas of financing and design development. It identifies key electronic products, namely mobile phones, IT hardware, hearables and wearables among others, providing the highest potential for exports, in view of massive global demand for these products. #manufacturing #investment #exports #economy /fiinews.com
