With China exporting more than $900 billion worth of electronic products annually, and Vietnam’s exports exceeding $100 billion, Indian policymakers are rightly concerned about the country’s electronics exports languishing around $15 billion. But rather than giving into the narrative that India has missed the manufacturing-led growth process, the government has adopted a number of trade and industrial policy initiatives to make the country a global production and exports hub. The electronics sector has been at the forefront of this strategy, being the first recipient of the Production Linked Incentive (PLI) scheme. Will this bold but unconventional strategy work? Drawing on the experience of successful electronics exporting nations, this study finds that the chance of success depends crucially on how the two broad goals – exporting at scale to the global market (globalise) and increasing the share of domestic value addition (localise) – are pursued.
