The Indian electronics industry has witnessed significant growth in recent years, particularly in the exports of electronics and mobile phone devices. With a surge in demand and favorable endorsements from global players like Apple, India stands at the precipice of a transformative leap in the finished electronic product segment.

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Speaking to CNBC-TV18, Jayant Dasgupta, former Indian ambassador to WTO, emphasised the need for India to take a leap in the finished electronic product segment.

According to Dasgupta, India's electronics exports to US experienced a remarkable upswing, recording a growth of 49 percent and reaching $25.3 billion in the previous year. He added that mobile phone exports accounted for a substantial portion, with a value of $11.5 billion.

“If you look at the figures for last year, India has done about $25.3 billion worth of export in electronics and it has grown by 49 percent. Of course it has been pushed significantly by mobile phone exports which have reached about $11.5 billion last year. So the time has now come for us to take a leap in finished electronic product segment,” Dasgupta said.

Pankaj Mohindroo, Chairman of ICEA, acknowledged India's strong growth in the electronics finished products market over the past few years. However, he highlights the fact that India's market share remains minuscule, standing at approximately one percent.

“US is the largest importer of electronics finished products with market of over $500 billion. So the size of opportunity for India in electronics finished products is enormous. India has seen very strong growth in electronics finished products market over the last 3-4 years but our share is very tiny of nearly one percent,” Mohindroo said.

Mohindroo added that while some manufacturing shifts out of China have favored countries like Vietnam, Mexico, and Taiwan, India's future remains bright. He believes the endorsement of India by industry giants such as Apple and the resulting ripple effect of attracting other American companies bodes well for India's prospects in the electronic finished product segment.

“I agree that electronics manufacturing which has shifted out from China has largely gone to Vietnam, Mexico and Taiwan, but the future is extremely bright for India. India has extremely strong endorsement from Apple and its ecosystem and that is also encouraging other American companies to set their sights on India. So I am very optimistic about India’s future in electronic finished product segment,” Mohindroo said.

Also Read: Why India may fall short of its $300 billion target for electronics manufacturing

Jayant Dasgupta also highlighted a significant shift in the perception of the US administration and Congress regarding investments in India. Dasgupta said previously, US industry players were cautious and encouraged to assess risks before investing in India. However, the current trend is encouraging as the US administration and Congress are actively urging US industries to invest in India, particularly in sectors like semiconductors, electronics, and high-tech industries. This paradigm shift serves as a positive sign for attracting investments into India's electronics sector.

Dasgupta also emphasised that while strategic partnerships and amicable relationships between governments are important, reforms and restructuring within India are essential to attract investments. The ease of doing business, the business environment, growth opportunities, and India's unique offerings compared to competing countries like Mexico, Vietnam, and Taiwan will determine investors' decisions. India must exercise sound judgment and implement reforms to create an investor-friendly ecosystem that sets it apart from its competitors, he added.

Watch video for entire discussion.

First Published:Jun 20, 2023 8:02 PM IST