Production in India

Economy of India

Main article: Economy of India

2023: How India takes China's share of electronics exports

India takes China from the market share in the export sector. electronic engineers This trend is most noticeable in and, USA Britain where geopolitical tensions in relations with the PRC are growing. This is stated in a study by the London company Fathom Financial Consulting, the results of which were published at the end of February 2024.

According to Bloomberg, citing the released data, as of the end of 2023, electronics exports from India to the United States in terms of a share of China's exports increased to 7.65%. In other words, if, for example, 100 tons of electronics were shipped from the PRC, then 7.65 tons from India. For comparison: a year earlier, this figure was 3.78%, and at the end of 2021 - 2.51%. In Britain, the value reached 10% at the end of 2023 against 7.14% in 2022 and 4.79% at the end of 2021. Exports of Zindian electronics are also growing to other countries, notably Australia, Canada and New Zealand.

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Фото: Fathom Financial Consulting

The study says the Indian government is engaging electronics manufacturers in the country through stimulus measures such as tax cuts, easier land acquisition, etc. The goal is to expand the capacity of the manufacturing sector in the country and increase exports, thereby strengthening the position in the global market.

India is home to Samsung Electronics, the largest cell phone factory, while Apple produces at least 7% of the total iPhone in that country through its contract manufacturers Foxconn Technology Group and Pegatron. It is estimated that by the end of 2023, electronics exports from India in terms of a share of China's exports amounted to 3.52% globally. Indian Prime Minister Narendra Modi in February 2024 announced plans to strengthen the country's international position.^[1]

2020: India allocates $6.7 billion for electronics manufacturing projects in the country

On June 2, 2020, the Indian government announced the allocation of $6.65 billion in financial support to enterprises that will open their production sites in the country or expand capacity in this state if available. The announcement was made by Ravi Shankar Prasad, a member of the Indian government responsible for the technology industry.

Initially, the authorities plan to offer participation in the program to five world manufacturers, smartphones but it is not yet known which ones. The corresponding announcement is planned to be made within two months - that is, by the end of July 2020.

The amount of allocations will depend on the volume of production. Moreover, program participants will have to invest in the Indian economy for several years in a row in order to receive support.

In addition to this, the authorities will choose five local companies, which will also be allocated financial assistance. We are also talking about electronics manufacturers.

The plan also includes initiatives to increase the production of electronic components and build production clusters that will be offered to foreign companies for common use. Clusters will be hangars in which vendors will be able to accommodate production equipment.

With the help of a new program, Indian authorities expect to attract more contract electronics manufacturers to the country as more companies look for production sites outside China, where the coronavirus pandemic has disrupted global supply chains.

Global players like Samsung and Taiwanese firms Foxconn and Wistron, which make devices for Apple, have already built up their manufacturing capacity in India, which, like China, is also attractive to cheap labor.^[2]

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