Has India’s electronic manufacturing turned a corner?
India’s electronic imports, which account for 27% of the country’s trade deficit, contracted in January for the first time since April 2014, while electronic exports turned positive for the second consecutive month, which if sustained could change the dynamics of India’s manufacturing and international trade.
In January, electronic imports contracted 2.2% to $3.2 billion, while electronic exports rose 7.8% to $0.5 billion. In November, growth in electronic exports turned positive at 0.66%.
If these data seem one off, consider more proof. Radio, television, communication equipment and apparatus group—which also includes other electronic items, including mobile phones, in the index of industrial production (IIP)—saw positive growth for the third consecutive month and grew at a whopping 82% in December, while cumulatively it contracted 1.2% during the April-December period, signalling a turnaround in October.
M.N. Vidyashankar, president of India Electronics and Semiconductor Association, said local manufacturing of electronic items have picked up with increase in value addition. “Production of LED panels, set-top box and mobile phones has got some traction in recent months. This is a good sign and government’s Make In India initiative seems to be showing results,” he added.