With insufficient production of electronic goods, four-fifths of India’s domestic demand is met by imports. While China’s exports of electronic products have surged from $44 billion in 2000 to over $900 billion in 2021, Vietnam’s case is the most striking; India and Vietnam had similar levels of exports two decades ago.
But, over the past decade, the latter’s exports have surged to nine times India’s. For India, electronics manufacturing as a share of the national output has stagnated at around 1.2% over the last two decades.
While the government has announced many schemes and incentives to push production, a study by ICRIER proposes that India should adopt the mantra of “first globalise, then localise,” a strategy used by China and Vietnam. Financial Express