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India looking at foreign exchange bill of Rs 5.37 lakh crore on mobiles, PC by 2025
Sep-20-2019

The Manufacturers' Association of Information Technology (MAIT) has said India is looking at a foreign exchange bill of Rs 5.37 lakh crore on mobiles, personal computer (PC) and datacom product consumption by the domestic market in the year 2025 if India does not develop an export-led manufacturing ecosystem soon. It said with a meagre export of around Rs 8,500 crore, the net outflow of foreign exchange stood at Rs 1,09,265 crore in 2018-19. With India now looking at massive scaling in local manufacturing, it recommended setting up of component hub to decrease India's disability. 

However, IT hardware industry body has stated if India aims and achieves 20 percent share in the global production by 2025, then it can generate a net positive foreign exchange of Rs 1.19 lakh crore and contribute Rs 4.71 lakh crore to country’s gross domestic product (GDP). Further, it said PCs as a category has the potential of generating a net foreign exchange positive of Rs 72,000 crore.

MAIT further said India's existing free-trade agreements (FTAs) have not yielded good results for the country and all the current FTAs have resulted in the loss of opportunities for Indian businesses. It also said ‘the government should now look at FTAs with consumer markets where we can get some access to market for products that we make in India.’ It has also recommended to develop export-oriented manufacturing ecosystem, and the government should encourage companies to set up global-scale manufacturing capacity in the country under the first phase and in the phase-II target increase in value addition.
 

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