India's electronics exports to US hit $8.7B, led by smartphones
What's the story
India's net electronics exports to the United States have soared, reaching a staggering $8.7 billion in FY24, according to the Economic Survey 2024.
This marks a significant shift from a trade deficit of $0.6 billion in FY17, highlighting India's growing role in the global electronics supply chain.
The most substantial growth within this sector has been seen in mobile phone exports, which the value of trade increasing from $2.2 billion in FY23 to $5.7 billion in FY24.
Future targets
Ambitious goal for electronics production revenue
The survey also shed light on India's ambitious goal of generating $300 billion in revenues from electronics production by 2025-26, a significant leap from the current $103 billion.
According to the survey, India is taking cues from successful East Asian economies as part of its strategy to deepen involvement in Global Value Chains (GVCs).The East Aisian economies generally focus on two main strategies: lowering trade costs and encouraging foreign investment.
Strategic approach
China plus one strategy to boost exports
The Economic Survey 2024 pointed out two potential strategies for India to benefit from the China plus one strategy: integrating into China's supply chain or promoting foreign direct investments (FDI) from China.
The survey suggested that focusing on FDI from China could be more promising for boosting India's exports to the US.
Additionally, it stated that choosing FDI as a strategy to benefit from the China plus one approach appears more advantageous than relying on trade.