Industry leaders underscored that India needs to create an enabling environment for Global Value Chains to take root if it has to build a large-scale, globally competitive electronics manufacturing industry. This comes in the backdrop of a recent report that lays out a roadmap to achieve $500 billion target in electronics manufacturing by FY2030 and create 60 lakh jobs.

According to Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association, GVCs not only result in large-scale job creation, but also build technology capabilities within the domestic industry. They bring in large-scale manufacturing, drive scale of production, reduce costs, and enhance competitiveness.

As India aims to increase its electronics production three to four times in a few years, integration with GVCs is viewed as integral to increasing production and exports. "While we have proven our capabilities by reaching $115 billion in electronics production, the next level of growth will depend on how best we can attract and integrate with GVCs", added Mohindroo. "We have to grab the fleeting window to create an enabling environment for GVCs in India".

GVCs represent an integral part of today's manufacturing. From design through production to marketing and distribution, they are globally integrated. They form 70 percent of global trade, indicating the greater need for India's integration into the global supply chain in areas such as electronics, semiconductors, autos, chemicals, and pharmaceuticals.

The charge has been led by the electronics sector, with 75% of its exports being sourced from GVCs. In the case of India's electronics sector, this growth was rapid to $155 billion in FY23. Production grew nearly two-fold from $48 billion in FY17 to $101 billion in FY23 again, largely due to mobile phones that are now 43 percent of the total electronics production.