One of the foremost priorities facing India today is its rising imports bill in the electronics sector. India imported electronics products worth over $48.3 billion in 2017-2018, making up 10% of its total imports bill. At the current pace, electronics will soon outstrip oil as India’s most valuable imports commodity.
The CII report ‘Integration into Electronics Global Value Chains: Vietnam’s Experience and Takeaways for India’ examines the trajectory of Vietnam’s rapid inclusion into global value chains (GVCs) for electronics. In 2016, Vietnam exported electronics products worth over $57 billion, an increase of 705% since 2010. While Vietnam’s integration is still at the lower levels of GVCs, there are many takeaways from its experience that India could adapt to its unique circumstances.
The report explores issues relating to GVC upgradation, skills development, backward linkages with the rest of the economy, ease of doing business, regional connectivity and trade agreements, and role of institutions and also opportunities for India in the electronics manufacturing sector. It provides suggestions for India’s closer integration into the world supply lines for the sector.