Report on India’s Electronics Manufacturing Growth and Alignment with Sustainable Development Goals

Executive Summary: Economic Transformation and SDG Contributions

A recent analysis by the Centre for Development Studies (CDS) indicates India’s significant progress in becoming a global electronics manufacturing hub. This transformation, driven by strategic policy and integration into Global Value Chains (GVCs), demonstrates substantial contributions towards several United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 17 (Partnerships for the Goals).

Analysis of Growth in the Mobile Manufacturing Sector

The mobile phone sector serves as a blueprint for India’s potential. The Production Linked Incentive (PLI) Scheme, initiated in 2020, has been instrumental in this shift.

• Export Performance: Mobile phone exports surged from $0.2 billion in 2017-18 to an estimated $24.1 billion in 2024-25, representing a growth of 11,950%.
• Domestic Value Addition (DVA): Total DVA in mobile manufacturing reached 23% in 2022-23, valued at over $10 billion.
  • Direct DVA increased by 283% to $4.6 billion.
  • Indirect DVA from domestic suppliers grew by 604% to $3.3 billion.

Contribution to SDG 8: Decent Work and Economic Growth

The expansion of the electronics sector has directly advanced SDG 8 by fostering sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

• Job Creation: The mobile phone sector supported over 1.7 million jobs in 2022-23, according to Annual Survey of Industries (ASI) data.
• Quality of Employment: Export-oriented employment witnessed a more than 33-fold increase, accompanied by notable improvements in wages, contributing to the goal of decent work.
• Economic Growth: The substantial rise in exports and DVA directly contributes to national economic growth and resilience.

Advancements in SDG 9: Industry, Innovation, and Infrastructure

India’s strategy aligns with SDG 9 by building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation.

• Sustainable Industrialization: The country has transitioned from an import-heavy market to a major production and export hub, demonstrating a significant step in industrial capacity building.
• Innovation and Policy: The PLI scheme is a key policy innovation that has successfully incentivized manufacturing scale and GVC integration.
• Infrastructure and Value Chains: The focus on “backwards-linked” GVC participation and recommendations for investment in logistics highlight the commitment to building a resilient industrial ecosystem.

Fostering Global Partnerships for Sustainable Development (SDG 17)

The nation’s electronics strategy underscores the importance of global partnerships, a cornerstone of SDG 17.

• Global Trade Integration: During the April-June quarter of FY26, electronics exports grew 47% to $12.41 billion, with the US, UAE, and China as top destinations, reflecting a diversification of trade partnerships.
• Supply Chain Participation: Strategic integration into GVCs is identified as critical for scaling exports and enhancing domestic capabilities, positioning India as a credible manufacturing alternative in Asia.

Policy Recommendations for Sustained Growth and SDG Achievement

The CDS report outlines a forward-looking strategy to cement India’s role as a global manufacturing leader and continue progress towards the SDGs.

1. Maintain a strong outward-oriented, export-focused strategy.
2. Pursue liberalised trade policies and implement necessary tariff corrections to enhance competitiveness.
3. Continue ecosystem development, with targeted investment in logistics and infrastructure to support industrial growth (SDG 9).
4. Prioritise achieving manufacturing scale before enforcing early-stage localisation mandates to ensure long-term viability and competitiveness in the global market.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth

  The article extensively discusses economic growth driven by the electronics manufacturing sector, the creation of a significant number of jobs, and improvements in wages, all of which are central to SDG 8.

• SDG 9: Industry, Innovation and Infrastructure

  The focus on transforming India into a global electronics manufacturing hub, the role of industrial policy like the Production Linked Incentive (PLI) Scheme, the growth of domestic value addition, and the need for ecosystem development including logistics directly align with the goals of SDG 9.

• SDG 17: Partnerships for the Goals

  The article highlights India’s strategic integration into global value chains (GVCs), the sharp increase in exports to partners like the US and UAE, and recommendations for liberalised trade policies, which are all related to fostering global partnerships for sustainable development.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 8: Decent Work and Economic Growth

   • Target 8.1: Sustain per capita economic growth in accordance with national circumstances. The article supports this by detailing the massive growth in the electronics sector, with mobile phone exports skyrocketing “from just $0.2 billion in 2017-18, to $24.1 billion in 2024-25” and Domestic Value Addition (DVA) reaching “over $10 billion generated domestically.”
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The article describes India’s transformation “from an import-heavy mobile phone market to a major production and export hub,” driven by strategic policies and integration into GVCs, which signifies a move towards higher productivity and technological upgrading.
   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation. The article cites the “Production Linked Incentive (PLI) Scheme” as a pivotal policy that spurred growth, job creation (“supported over 17 lakh jobs in 2022-23”), and “notable improvements in wages.”

2. SDG 9: Industry, Innovation and Infrastructure

   • Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product. The article’s entire theme is about the growth of the electronics manufacturing industry, its increasing contribution to exports, and its role in job creation, directly contributing to this target.
   • Target 9.b: Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment. The report’s recommendation to “continue to focus on an outward-oriented strategy” and develop the “ecosystem” points to creating a policy environment that supports domestic industrial capacity.

3. SDG 17: Partnerships for the Goals

   • Target 17.11: Significantly increase the exports of developing countries. The article provides direct evidence of this, stating mobile phone exports grew by “a staggering 11,950 per cent” and overall electronics exports “rose 47 per cent to $12.41 billion during the April-June quarter of FY26.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicators for SDG 8

   • Indicator 8.2.1 (Annual growth rate of real GDP per employed person): Progress can be measured using the data on Domestic Value Addition (“Total DVA touched 23 per cent in 2022-23, with over $10 billion generated domestically”) relative to the number of jobs created (“supported over 17 lakh jobs in 2022-23”).
   • Indicator 8.5.2 (Unemployment rate): The creation of “over 17 lakh jobs” directly contributes to reducing the unemployment rate, serving as a measure of progress.

2. Indicators for SDG 9

   • Indicator 9.2.1 (Manufacturing value added as a proportion of GDP and per capita): The article explicitly mentions the value added, stating “Total DVA touched 23 per cent in 2022-23, with over $10 billion generated domestically.” This is a direct indicator.
   • Indicator 9.2.2 (Manufacturing employment as a proportion of total employment): The figure of “over 17 lakh jobs” in the mobile phone sector is a direct measure for this indicator.

3. Indicators for SDG 17

   • Indicator 17.11.1 (Developing countries’ and least developed countries’ share of global exports): The article provides specific export values, such as mobile exports reaching “$24.1 billion in 2024-25” and total electronics exports hitting “$12.41 billion during the April-June quarter of FY26.” These figures can be used to track India’s share of global electronics exports.

4. Table of SDGs, Targets, and Indicators

Source: timesofindia.indiatimes.com