NITI Aayog : $500 billion electronic manufacturing target by 2030
Report
4 min read
The National Institution for Transforming India (NITI) Aayog, in a report titled” Electronics: Powering India’s Participation in Global Value Chains,” has set an ambitious target of $500 billion in electronic manufacturing in value terms for India to be achieved by 2030. This will help India achieve its ambition of becoming the world’s third-largest economy.
According to the International Monetary Fund(IMF), India is the world’s fifth-largest economy after the United States, China, Japan, Germany, and France.
The report was released by NITI Aayog’s Vice Chairman Sudesh Berry in New Delhi on 18 July 2024.
Status of the Electronic Manufacturing sector in india
The NITI Aayog report analysed the electronic sector in India and its potential and suggested a series of policy initiatives to realise this target. Here are some of the important points of the report.
- India’s electronic sector has recorded impressive growth from $48 billion in domestic production in 2017-18 to 101 billion in 2022-23.
- Out of the $101 billion production, the contribution of finished goods was $86 billion, while the contribution of component manufacturing was $15 billion.
- Mobile phones constitute 43 percent of total electronic manufacturing, and India meets 99 per cent of its smartphone requirements domestically.
- China’s share of the global electronic manufacturing output is 28.4 per cent, while India's share was only 3.3 per cent.
- India's export of electronic goods in 2022-23 was around $25 billion, less than 1 per cent of the global electronics export market.
Target for 2030
The NITI Aayog reports mention that if India aims to become the third-largest economy in the world, then the electronic manufacturing sector will have to play a major role.
- NITI Aayog has set a $500 billion electronic manufacturing target by 2030.
- The target for finished goods manufacturing is $350 billion, while the target for components manufacturing is $150 billion.
- It will create an estimated 55 to 60 lakhs of new employment opportunities in the country.
- It will boost electronics exports to $240 billion.
About NITI Aayog
It was set up by a resolution of the Union Cabinet on 1 January 2015. It replaced the planning commission.
Like the planning commission, it is an extra-constitutional, extra-statutory body.
It comes under the Union Ministry of Planning.
The Prime Minister is always the chairman of the NITI Aayog- Current chairman, Narendra Modi
Vice Chairperson: Suman Berry
