The analysis was conducted by London-based Fathom Financial Consulting. This pattern is accompanied by an increase in geopolitical tensions between these nations and China, which forces industries to diversify their supply networks.
Principal Results:
Significant growth in India’s contribution: In November 2023, India’s percentage of electronics exported to the US increased from 2.51% to 7.65%, compared to November 2021. In a similar vein, India’s market share in the UK increased from 4.79% to 10% in the same time frame. Government incentives: By providing alluring incentives like tax breaks, rebates, streamlined land acquisition procedures, and financial support, the Indian government is aggressively luring in electronics businesses.
This is in line with Prime Minister Narendra Modi’s “Make in India” initiative, which attempts to increase exports and domestic manufacturing. Major players present: India’s position in the global electronics export market has been further cemented by the establishment of production facilities by well-known corporations such as Apple Inc. and Samsung Electronics Co.
India is home to Samsung’s largest cell phone plant. At least 7% of Apple’s iPhones are made in India by contract manufacturers Foxconn Technology Group and Pegatron Corp. Restricted advancement in other areas: Although India is gaining momentum in the US and UK, its advancement in Europe and Japan has been more muted.
This points to the possibility of a “China plus one” approach taking shape, in which producers keep part of their output in China while looking for more diverse options. India’s electronics exports to Germany were 3.38% of China’s as of November 2023, and 3.52% worldwide.
This breakthrough gives Prime Minister Modi’s “Make in India” campaign a big boost and might result in more exports, more jobs being created, and less reliance on imports. The report also emphasizes India’s potential to rise to prominence in the world market for electronics exports. But it’s important to recognize that China continues to have a strong position, and India’s progress is expected to be gradual.
Overall, the study paints a picture of a promising future for India’s electronics industry, with the potential to capture a larger share of the global market.
