Beyond mobile manufacturing: Why the Budget needs to go high-tech
India can elevate its standing in global exports by branching out into high-tech manufacturing, which holds a lot of potential for growth. While India’s strengths have been more prominent in the traditional labour-intensive industries such as gems and jewellery, leather, and readymade garments, it is the export of high-tech products that can prove to be a real game changer for the economy.
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However, at present, India’s share is still low when compared to global counterparts. For instance, high-technology exports, as a percentage of manufactured exports, were reported at 14.93% in India in 2023, according to the World Bank collection of development indicators. This was much lower than Vietnam, which reported 42.69% in 2022 and China at 26.57% in 2023.
A report by the US India Strategic Partnership Forum (USISPF) says that high-tech manufacturing is typically characterised by recurring large spend on R&D and willingness to invest in innovation, technology, and associated infrastructure by companies. “India currently contributes less than 3% of the global output of key high-tech manufacturing industries, including electronics, aerospace, and medical devices,” it stated.
Experts seek out incentives in the upcoming Budget for more actionable efforts in this domain. Independent
