India is gradually gaining ground in the export market

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Indian Prime Minister Narendra Modi (L) shakes hands with Chinese President Xi Jinping at the West Lake State Guest House ahead of G20 Summit in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Wang Zhao/Pool

According to a recent study, India is gradually gaining ground in the export market, gradually eroding China’s dominance, particularly in the realm of electronics. This shift is most notable in regions like the UK and US, where tensions with China have escalated in recent times.

The Indian government is actively enticing electronics manufacturers with a slew of incentives, including tax breaks, rebates, streamlined land acquisition processes, and financial support, all aimed at bolstering domestic manufacturing and fostering greater exports. Notably, major players like Samsung and Apple have established manufacturing operations in India, aligning with Prime Minister Narendra Modi’s ambitious ‘Make in India’ initiative.

The surge in electronics exports from India, especially to the US, is attributed to increased investment by companies like Foxconn. However, India’s progress in capturing market share is more moderate in Europe and Japan, suggesting a trend towards dual supply chains rather than a complete shift away from China-based production.

Indian firms have been actively promoting their role in multinational corporations’ ‘China plus one’ strategy, which involves developing alternative manufacturing bases in different countries.

This rising market share is seen as a significant achievement for Prime Minister Modi, reinforcing the objectives of his ‘Make in India’ campaign to generate employment, boost exports, and enhance self-reliance in the economy by reducing dependence on imports. With elections on the horizon, Modi is anticipated to secure a third term in office, further underscoring the support for his economic policies.

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