Electronics play India should move to high-value items: Niti Aayog

New Delhi: India's electronics strategy must move beyond labour-intensive assembly towards higher value-added activities, the Niti Aayog said.

It should also improve logistics efficiency and simplify regulations to build a globally competitive electronics ecosystem and support the $500 billion manufacturing ambition by FY30, it said in its Trade Quarterly Report for July-September quarter of 2025-26, released on Friday. "While India has made strong gains in trade and electronics assembly, sustaining long-term competitiveness will hinge on much deeper integration into global value chains," the report said.

"This transition requires moving beyond assembly-led gains to component-led and high-value manufacturing such as PCB design, semiconductor assembly and testing, power electronics," it added.


According to the report, there is a need to align incentives towards domestic value addition, sustained R&D and ecosystem deepening supported by anchor investments that transfer technology, improve standards and generate stable demand for local suppliers.

"On cost competitiveness, coordinated fiscal, trade and logistics reforms are essential to close persistent structural cost gaps," it said.

On the demand side, greater emphasis is required on predictable domestic procurement, export finance and regulatory simplification to attract investments, especially in a turbulent geopolitical environment. "These measures can anchor India's transition from a manufacturing base to a globally competitive electronics ecosystem and support the $500 billion manufacturing ambition by FY2030," it added.

As per the report, India's total merchandise and services trade grew by 5.1% year-on-year during April-September 2025, reaching $895.1 billion. Exports rose faster than imports, supported by robust growth in services and select merchandise categories with strong export growth to markets such as Hong Kong, China, the UAE and the US, while Asean showed some moderation.

The report also said that e-commerce has emerged as a critical enabler of future export growth with India now among the world's top six e-commerce markets, with strong momentum in electronics-led online trade.

"While e-commerce exports are currently small, they are projected to scale rapidly and could contribute up to a quarter of India's merchandise exports by 2030, provided regulatory, logistics and MSME-related constraints are addressed," it added.