An India-US pact on electronics would benefit both countries. Now's the time.
Subscribe to enjoy similar stories. A pioneer of India’s software industry asked me some time ago if this was the ‘Y2K moment’ for Indian electronics hardware. My answer was an emphatic ‘yes.’ It is all the more evident today.
India is poised to be a full-stack player. We can design, make and provide a supply chain for electronics system design and manufacturing (ESDM). We can develop, test and market products at home and overseas.
The Union government recognizes this and has been aggressively pushing a policy for India to emerge as an ESDM hub. Generous business incentives for electronics, semiconductors and allied sectors have sparked interest among investors, multinational corporations and business houses. India has the requisite talent and infrastructure, yet its ESDM activity is still nascent and a strong case can be made in favour of acquiring a trusted partner.
When the software surge took place in the country, Indian industry had the US as its natural partner. It is time to extend that goodwill and relationship to electronics hardware. This would expand trade and provide an excellent business opportunity.
The US is a leader in global value chains across ESDM sectors. American firms lead in smartphones, personal computers and servers, networks, electric vehicles, semiconductors and operating systems, among other fields. India, on the other hand, is the world’s fastest-growing major ESDM market and is keen to develop a manufacturing ecosystem and supply chain.
There is a natural synergy that India and the US can leverage to mutual benefit. The time has come for both countries to forge a formal pact or memorandum of understanding on ESDM collaboration. Bilateral trade in the sector has already risen to $4.9 billion
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