India has US$ 2.7 Trillion Untapped Export Potential in Electronic Exports: UNCTAD Data

Despite the low market share of electronic exports (0.3%), India ‘s marginal market share in the world market means that India still has an untapped ability to mass produce and export these electronic products to the world market.

India has an untapped export potential of US$ 2.7 trillion in electronic exports, according to the United Nations Conference on Trade and Development (UNCTAD) results.

India’s share of key electronic products in global exports is barely 0.3%, while the corresponding figure for Malaysia and Vietnam is estimated at 3% and for Thailand at 2%, according to the latest UNCTAD statistics.

Furthermore, the data show that China is the largest exporter of electronic goods, with a worldwide share of 26%, followed by Hong Kong, with a share of 13%. The other big exporters are South Korea, the USA, Germany, and Japan, with shares of 6.8%, 6.6%, 4.8% and 3.2%, respectively.

Hong Kong ‘s share has more than doubled from 5.4% to 13% since 1995, while South Korea ‘s share has risen slightly from 4.9% to 6.8%. The contribution of Vietnam to electronic exports grew from practically zero in 1995 to 2.9%.

Japan and the USA’s share of worldwide electronic exports decreased sharply during this time, while Germany’s share contracted slightly. During this time, India’s share remained steady at around 0.1-0.3%, UNCTAD data shows.

The size of the world market for exports of electronic products is US$ 2.74 trillion, of which India’s exports are barely US$ 7.79 billion (0.3%).

Ms. Rupa Naik, Senior Director, MVIRDC World Trade Centre Mumbai, said, “India has the opportunity to capture the huge world market for electronic products because of the shifting global supply chain after the outbreak of pandemic and progressive policy measures such as production linked incentives and SPECS.”

Source: IBEF