India is rapidly asserting itself as a formidable contender in the global electronics export arena, posing a substantial challenge to China’s established dominance. This trend is particularly pronounced in regions like the UK and the US, where geopolitical tensions with China have intensified. Recent statistics underscore the significant surge in India’s electronics exports, notably increasing from 2.51% to 7.65% in the US and from 4.79% to 10% in the UK as of November last year.
To attract electronics manufacturers, the Indian government has implemented a range of robust incentives, encompassing tax cuts, rebates, simplified land acquisition, and capital support. This strategic initiative is geared not only towards bolstering domestic manufacturing capabilities but also facilitating exports and nurturing global partnerships within the electronics sector. Key industry players, such as Samsung and Apple, are actively contributing to India’s burgeoning success, with the country hosting Samsung’s largest mobile phone factory, and Apple producing a noteworthy 7% of its iPhones in India through manufacturing partners like Foxconn and Pegatron.
The report further suggests a gradual shift in Europe and Japan towards adopting dual supply chains, a phenomenon popularly known as the ‘China plus one’ strategy. This strategic diversification is emblematic of a broader trend within multinational corporations, emphasizing the development of backup production capacity in alternative countries. India’s growing market share, particularly in the US and the UK, stands as a positive testament to its pivotal role in the global electronics supply chain. Aligned with India’s national initiative, ‘Make in India,’ this surge in electronics exports not only contributes to job creation but also signifies a step towards reducing import dependency and fostering economic self-reliance on the global stage.
Source: Logistics Insider