India's Electronics Exports to US Surge to $8.7 Billion in FY24: Economic Survey

The Economic Survey 2023–24 stated on July 22 that India's electronics exports to the US had changed from a trade deficit of $0.6 billion in FY17 to a trade surplus of $8.7 billion in FY24, highlighting a notable growth in value addition by the nation in the global electronics supply chain.

Mobile phones are the category in the electronics sector that has grown the fastest, with exports to the US increasing from $2.2 billion in FY23 to $5.7 billion in FY24.

"India will examine the achievements and approaches of East Asian countries as it seeks to increase its participation in Global Value Chains (GVCs). Historically, these economies have focused primarily on two goals: lowering trade barriers and promoting foreign investment. Countries like Malaysia, Vietnam, and Taiwan have concentrated on reducing their trade costs throughout time because GVCs are intended to reduce expenses. Enhancing logistics efficiency has been a top priority for India, according to the poll.

"Actions to boost and stabilise foreign investment are part of the second strategy, which is centred on investment facilitation. The PLI plan, for instance, provides a market-linked incentive structure for enterprises to adhere to, which promotes high-quality foreign investment."

The Economic Survey states that India can either encourage foreign direct investment (FDI) from China or integrate into China's supply chain to gain advantages from China plus one plan.