MeitY: Electronics Manufacturing Vision Document

The Ministry of Electronics and Information Technology recently released a five year road map for the electronics sector. The ministry also released a vision document called “300 billion USD Sustainable Electronics Manufacturing and Exports by 2026”.

About the vision document

This the second part of the document. The first part was released in November 2021. It was called “Increasing India’s Electronics Exports and Share in GVCs”.

What does the second vision document say?

• This vision document gives predictions about the products that will transform Indian manufacturing sector into a 300 billion USD. The current trade value of the manufacturing sector is 75 billion USD.
• The product lists certain products that will lead the growth of electronics manufacturing sector. They are consumer electronics, IT hardware, mobile phones, auto electronics, telecom equipment, hearable electronic accessories, wearable electronic accessories, LED lighting, industrial electronics.
• According to the document, the mobile sector is to contribute 40% of the growth of the sector.
• The ministry aims to increase the annual production of the sector to 100 billion USD. Currently, the production is 30 billion USD.

Mission of the second document

• The second document focuses on new customers and new markets. The electronics manufacturing sector is to play a major role in the Global Value Chain.
• The growth in the electronics manufacturing is to be governed by two factors namely growth and diversification of global value chains and growth of digital consumption.

Significance of the vision document

• The domestic electronics market in the country is to increase to 180 billion USD in the next five years. Currently it is at 65 billion USD. With this, the electronics manufacturing sector is to rank second or third in terms of exports by 2026.
• The current electronics exports are 15 billion USD. Of the 300 billion USD, the exports alone are expected to increase to 120 billion by 2026.

Month: Current Affairs - January, 2022

Category: Economy & Banking Current Affairs