India has USD 2.7 trillion untapped export potential in electronic exports: UNCTAD data
New Delhi, Oct 28 (KNN) Despite having the low market share (0.3 per cent) in electronic exports, the marginal share of India in the world market implies that there is still untapped potential for India to mass produce and export these electronic goods to the world market.
According to data by the United Nations Conference on Trade and Development (UNCTAD) India has USD 2.7 trillion untapped export potential in electronic exports.
India’s share in world exports of key electronic products stands at hardly 0.3 per cent, while the corresponding figure for Malaysia and Vietnam is estimated at 3 per cent, and that for Thailand is 2 per cent, shows the latest data from UNCTAD.
The data further shows that China is the largest exporter of electronic goods, with a global share of 26 per cent and it is followed by Hong Kong with a share of 13 per cent. Other major exporters are South Korea, USA, Germany and Japan, with respective shares of 6.8 per cent, 6.6 per cent, 4.8 per cent and 3.2 per cent.
The share of Hong Kong more than doubled from 5.4 per cent to 13 per cent since 1995, while the share of South Korea grew marginally from 4.9 per cent to 6.8 per cent. Vietnam’s contribution to electronic exports grew to 2.9 per cent from virtually nil in 1995.
Share of Japan and USA in world electronic exports declined sharply during this period, while that of Germany contracted marginally. India’s share during this period remained steady around 0.1-0.3 per cent during this period, data from UNCTAD shows.
The size of the world export market for electronic goods is pegged at USD 2.74 trillion, of which India’s exports is hardly 7.79 billion (0.3 per cent).
Speaking on the export prospect for electronic goods, Rupa Naik, Senior Director, MVIRDC World Trade Centre Mumbai remarked, “India has the opportunity to capture the huge world market for electronic products because of the shifting global supply chain after the outbreak of pandemic and progressive policy measures such as production linked incentives and SPECS.”
Naik also raised hope that the electronic sector can be the engine of manufacturing growth in India in the post-pandemic period with appropriate policy interventions, including handholding of MSMEs, cluster development and discouraging cheap imports under free trade agreements (FTAs).
Notably, in the last few months, global and Indian electronic companies have committed USD 100 billion worth electronic goods production, 80 per cent of which is for exports, under the production linked incentive scheme of the Ministry of Electronics and Information Technology (MEITY), Government of India.
''In the last two months, India received 44 applications under another scheme, known as SPECS, which provides capital subsidy for investors,'' said Saurabh Gaur, IAS, Joint Secretary, MEITY.
The government expects at least Rs 50,000 crore investment in electronic component manufacturing under this scheme in the next few years, the joint secretary had said at a recent webinar conducted to release MVIRDC Research Study on ‘Promoting Electronic Manufacturing in India’.
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