Current Affairs PDF

MoS Rajeev Chandrasekhar Releases “Globalise to Localise” Report Exploring USD 300 Billion in Electronic Production by 2026

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

Government is laser focused on achieving target of 300 billion USD electronic production by 2026

Rajeev Chandrasekhar, Union Minister of State (MoS), Ministry of Electronics and Information Technology (MeitY), published a report titled “Globalise to Localise: Exporting at Scale and Deepening the Ecosystem Are Vital to Higher Domestic Value Addition.”

  • The report investigates how India can reach its goals of USD 300 billion in electronics production and USD 120 billion in exports by 2025–2026.
  • It is prepared by the Indian Council for Research on International Economic Relations (ICRIER) in collaboration with the India Cellular and Electronics Association (ICEA).

Key Inferences from The Report

i.The Globalise to Localise report analyzes the empirical relationship between exports and the share of domestic value addition in successful nations.

  • It discovers that the two variables have a short-term negative correlation but a medium-term positive connection.

ii.According to the report, China and Vietnam have adopted the motto “first globalise, then localise,” which indicates that in the beginning, they were focused on reaching a global scale in exports and shifted their focus to include more local content.

  • Therefore, the report suggests a sequential strategy that can put India’s exports on a par with those of China and Vietnam.

iii.Immediate objectives should be to export at scale to global markets (globalise), and thereafter to increase the share of local content (localise).

Note: The lead author of the report is Dr. Deepak Mishra, Director & Chief Executive (CE) of ICRIER.

Key Suggestions from The Report

i.The report makes various recommendations for policies and regulations necessary to develop India’s broader electronics ecosystem. In addition, schemes like Gati Shakti will help boost India’s competitiveness.

ii.The report highlights the urgent need for India to introduce supporting industry development programmes, organize sourcing fairs, and implement technological upgradation programmes in order to establish a competitive domestic ecosystem of ancillary suppliers.

Journey of Electronics Sector in India

i.As a result of the government’s initiatives, India has a manufacturing economy worth USD 76 billion and exports worth USD 16 billion in 2022, with an aim of USD 21 to USD 25 billion in exports in 2023.

  • India’s reliance on imported electronics as well as petroleum surged in 2014.

ii.A target of USD 300 billion in manufacturing and USD 120 billion in exports by 2026 has been explicitly outlined in a strategy that emphasises the broadening and deepening of the electronics ecosystem.

iii.According to ICEA, in the fiscal year 2021–2022 (FY22), India’s exports of electronics exceeded USD 16 billion.

  • The sector of electronics has evolved to become India’s 6th-largest export in 2022.

iv.Mobile phones are the single largest component of India’s electronics exports.

  • By 2023, they are expected to account for 50 % of total electronics exports.

Indian Council for Research on International Economic Relations (ICRIER)

ICRIER is an autonomous economic policy think tank that has been in operation since 1981.

Goal: To provide rigorous analytical research, objective policy guidance, and extensive networking opportunities to help Indian policymakers make well-informed decisions.

Director & Chief Executive (CE) of ICRIER – Dr. Deepak Mishra

India Cellular and Electronics Association (ICEA)

The ICEA is the leading industry body for the mobile and electronics sectors, representing manufacturers, brand owners, technology providers, Value Added Services (VAS) application & solution providers, distributors, and retail chains for mobile handsets and electronics.

Goal: To uphold the vision of building Indian manufacturing and design in industries other than mobile handsets while consolidating the advancements made in the mobile handset and components industry.

Chairman of ICEA – Pankaj Mohindroo

Recent Related News:

Prime Minister (PM) Narendra Modi inaugurated ‘Digital India Week 2022’, a Digital Expo – Digital Mela, at Mahatma Mandir in Gandhinagar, Gujarat. It is organized by the Ministry of Electronics and Information Technology (MeitY). The week will be celebrated from July 4 to July 9, 2022 to showcase the transformation of India’s digitally empowered society and knowledge economy. The theme for Digital India Week 2022- ‘Catalyzing New India’s Techade’.

About Ministry of Electronics & Information Technology (MeitY):

Union Minister – Ashwini Vaishnaw (Rajya Sabha – Odisha)
Minister of State (MoS) – Rajeev Chandrasekhar