New Delhi

NITI Aayog announced on Wednesday that the manufacturing sector, particularly electronics, will be vital for India’s goal of becoming ‘Viksit Bharat.’ This progress can be accelerated through the ‘Make in India’ initiative by enhancing participation in Global Value Chains (GVCs).

To support this vision, NITI Aayog plans to release a detailed report outlining a strategy for India to establish itself as a leader in electronics manufacturing. Currently, 70% of global trade consists of GVC items, highlighting the importance of increasing India’s involvement in these chains.

The report emphasizes prioritizing key sectors such as electronics, semiconductors, automobiles, chemicals, and pharmaceuticals, which are crucial to the GVC framework. Notably, the electronics sector plays a significant role, as nearly 80% of its exports originate from GVCs.

In the financial year 2023, India’s electronics exports were substantial, contributing about 5.32% to the country’s total merchandise exports. At present, India’s electronics manufacturing mainly focuses on the final assembly of products.

While brands and design firms are beginning to outsource tasks like assembly and packaging to Electronic Manufacturing Services (EMS) companies in India, the overall ecosystem for design and component manufacturing is still in its early stages, according to NITI Aayog.