Context

• Last month, PM Modi announced a target of $500 billion (Rs 4.20 lakh crore) in electronics manufacturing by 2030 and this ambition to become a global hub for electronics manufacturing is bold and transformative.
• To succeed, India must focus on export-led growth and regional clusters, supported by targeted regulatory reforms.
• It is crucial to explore the potential benefits of this initiative, the challenges it faces, and a strategic path forward through regional clustering and regulatory improvements.

Potential Benefits of Electronics Manufacturing for India's Economy

• Potential to Transform India’s Economy
  • Growth in electronics manufacturing can directly contribute to job creation, a critical need given India’s large workforce.
  • A case in point is the Apple ecosystem, which alone has generated exports of around $14 billion (Rs 1.17 lakh crore) and employs 160,000 people in India.
  • Expanding this sector would multiply such benefits across a range of other companies and supply chains.
• An Opportunity to Capture Electronics Market
  • By becoming a competitive exporter of electronics, India can reduce its trade deficits and enhance its strategic position in global supply chains.
  • India's total manufacturing output in 2023-24 was roughly $660 billion (Rs 55.4 lakh crore), which highlights the scale of the leap required to meet the $500 billion target in electronics alone.

The Role of Regional Clusters in Driving Growth

• Engines of Industry Growth
  • A key lesson from the history of manufacturing is that regional clusters have often been the engines of industry growth.
  • Successful clusters have emerged in regions like Silicon Valley in the United States, Taiwan, Japan, South Korea, and more recently, Shenzhen in China and the Northern Key Economic Region (NKER) in Vietnam.
  • These clusters have benefited from geographical proximity, shared infrastructure, and a concentration of suppliers and manufacturers that collectively boost competitiveness.
• Potential to Become Competitive Manufacturing Zones
  • In India, regions like Sriperumbudur in Tamil Nadu and Noida in UP have emerged as budding electronics hubs, contributing nearly 50% of India's electronics exports.
  • Building on these existing clusters through region-led reforms could create globally competitive manufacturing zones.
  • However, for these clusters to match global benchmarks like Shenzhen, significant investments in infrastructure and supportive policies are needed.

Strategic Steps for Building Competitive Manufacturing

• Expanding Existing Clusters and Developing Large Special Zones
  • Rather than creating new clusters from scratch, India can benefit from scaling up regions that are already contributing significantly to electronics exports, such as Sriperumbudur in Tamil Nadu and Noida in Uttar Pradesh.
  • These clusters already have established ecosystems, including a network of suppliers, manufacturers, and supporting services.
  • However, their current sizes limit their ability to compete on a global scale.
  • To address this, the government could declare a large special zone of around 300 square kilometres that incorporates both existing factories and new industrial parks.
• Attracting Anchor Investors and Building Supply Chain Networks
  • Anchor investors are typically large companies, such as global electronics brands or leading component suppliers, whose presence can attract other firms along the supply chain.
  • For example, Apple’s decision to partner with suppliers like Foxconn and Pegatron has significantly boosted India’s electronics manufacturing ecosystem.
  • To attract such anchor investors, the government could offer targeted incentives like tax breaks, subsidies for setting up manufacturing units, and streamlined processes for land acquisition and construction permits.
  • These incentives would make it more attractive for global brands to set up operations in India, even when other countries like Vietnam and China might offer competitive alternatives.
• Enhancing Infrastructure and Worker Support Facilities
  • Physical Infrastructure
    • This includes building robust transportation networks, such as highways, ports, and rail links, which connect the cluster to major cities and international markets.
    • Efficient transport reduces the time and cost of moving goods to ports for export, which is particularly important for electronics manufacturing, where speed and flexibility are critical.
    • Additionally, the availability of consistent power supply, water, and internet connectivity is essential for operating high-tech electronics factories.
  • Social Infrastructure
    • Manufacturing clusters also need to address the needs of workers, who form the backbone of any production ecosystem.
    • Large zones can house worker accommodations, educational facilities, healthcare centres, and recreational areas.
    • This ensures that workers are close to the factories, reducing their commute time and improving their overall quality of life.
    • Providing such facilities also makes it easier for companies to attract and retain skilled workers, thereby enhancing productivity and reducing turnover rates.
• Implementing a Pro-Export Regulatory Framework
  • Customising Labor Laws
    • Electronics manufacturing often involves long production cycles, which may require flexibility in working hours and shifts.
    • India needs to implement labour laws that allow for extended shifts, overtime, and flexible working conditions, particularly for women, who constitute a significant proportion of the workforce in electronics factories.
    • By making labour regulations more business-friendly, the government can help attract manufacturers that require flexibility to meet global demand.
  • Easing Taxation and Inventory Management
    • Electronics manufacturing is characterised by a fast-paced innovation cycle, requiring the frequent import and export of components.
    • To compete with other manufacturing hubs, India must simplify its tax structure to facilitate seamless cross-border movement of goods.
    • For instance, allowing foreign companies to manage component inventories without complex customs regulations could make India a more attractive destination for electronics brands.
    • By benchmarking corporate tax and GST rates against those in countries like Vietnam and China, India can ensure that it remains competitive in attracting investments.
  • Streamlining Environmental Regulations
    • While it is important to maintain environmental standards, many of India’s regulatory norms related to pollution, green cover, and building permits are not aligned with global manufacturing practices.
    • In special electronics zones, the government could grant the EMC authorities the power to adapt these norms to suit industrial requirements, as long as the broader environmental objectives are maintained.
    • Such flexibility would enable quicker factory setup and expansion, making India more attractive for large-scale manufacturing projects.
• Decentralising Administrative Power for Faster Decision-Making
  • In many successful clusters, local authorities can grant approvals, licenses, and permits without needing to navigate complex layers of bureaucracy.
  • This decentralised approach ensures that businesses can respond swiftly to changes in market demand or production requirements.
  • In India, devolving such powers to the EMC authority would enable quicker and more efficient resolution of business concerns.
• Encouraging Public-Private Partnerships (PPP) for Development
  • PPP can play a crucial role in the development of manufacturing clusters by bringing in expertise, investment, and speed.
  • Private developers can be involved in building plug-and-play industrial parks, where factories can start production quickly without the need to invest in basic infrastructure.
  • This model has been successful in countries like China, where private developers have helped create high-quality industrial zones that attract foreign investment.

Conclusion

• India’s $500 billion electronics manufacturing target represents a bold vision that could transform the country’s economy and generate millions of jobs; however, the scale of the ambition requires an equally bold approach to reform.
• By leveraging the power of regional clusters, investing in infrastructure, and implementing tailored regulatory changes, India can create a competitive manufacturing ecosystem.

About SAMARTH Scheme:

• The Scheme for Capacity Building in Textiles Sector (SAMARTH) is a demand-drivenand placement-oriented umbrella skilling programme.
• Aim: It aims to incentivize and supplementthe efforts of the industry in creating jobs in the organized textile and related sectors, covering the entire value chain of textiles, excluding Spinning and Weaving.
• In addition to the entry-level skilling, a special provision for upskilling/ re-skilling programme has also been operationalized under the scheme towards improving the productivity of the existing workers in the Apparel & Garmenting segments.
• Under this scheme skilling programme is implemented through the following Implementing Agencies:
  • Textile Industry.
  • Institutions/Organizations of the Ministry of Textiles/State Governments having training infrastructure and placement tie-ups with the textile industry.
  • Reputed training institutions/ NGOs/ Societies/ Trusts/ Organizations/ Companies /Start-Ups / Entrepreneurs active in the textile sector having placement tie-ups with the textile industry.
• Nodal Ministry:Ministry of Textiles.

About Kaziranga National Park:

• It is situated in the north-eastern part of the country in the districts of Golaghat and Nagoan in the state of Assam.
• It is the single largest undisturbed and representative area in the Brahmaputra Valley floodplain.
• In 1985, the park was declared a World Heritage Site by UNESCO.
• Rivers: The river Diffalu, a tributary of the Brahmaputra, flows through the National Park area (core/critical tiger habitat), while another tributary, Moradifalu, flows along its southern boundary.
• Landscape: It is of sheer forest, tall elephant grass, rugged reeds, marshes, and shallow pools.
• Flora:
  • It is primarily famous for its dense and tall elephant grasses intermixed with small swamplands.
  • It also includes an abundant cover of water lilies, water hyacinths and lotus.
  • Rattan Cane, a type of climbing palm, is also found here.
• Fauna: Many endangered and threatened species like Rhino, Tiger, Eastern swamp deer, Elephant, Buffalo, Hoolock gibbon, Capped langur, and Gangetic River dolphin are commonly found in the habitat.
• It is inhabited by the world's largest population of one-horned rhinoceroses, as well as many mammals.

About Drugs Technical Advisory Board:

• It is the highest statutory decision-making body on technical matters related to drugs in India.
• It is established as per the Drugs and Cosmetics Act, 1940.
• It is part of the Central Drugs Standard Control Organization (CDSCO).
• Function:It advises the Central Government and the State Governments on technical matters arising out of the administration of the Drugs and Cosmetics Act, of 1940 and to carry out the other functions assigned to it by this Act.
• Nodal Ministry:Ministry of Health and Family Welfare.

What is new drug?

• According to Rule 122 E of the Drug and Cosmetic Rules 1945, a new drug can be one which has not been used in the country and has not been recognised as effective and safe by the licensing authority for the proposed claims.
• It could also be an approved drug with modified or new claims including indications, dosage, and new route of administration. 
• If brought into the new drug bracket, the manufacturing, marketing, and sale of antibiotics will be documented.
• Also, the manufacturing and marketing clearance will have to be obtained from the Central government instead of State drug administration, and patients will be able to buy antibiotics only on prescription. 

About International Solar Alliance Assembly:

• It is the apex decision-making body of International Solar Alliance (ISA), representing each Member Country.
• This body makes decisions concerning the implementation of the ISA’s Framework Agreement and coordinated actions to be taken to achieve its objective.
• Functions: The Assembly deliberates matters of substance, such as the selection of the Director General, the functioning of ISA, approval of the operating budget, etc.
• It meets annually at the ministerial level at the ISA’s seat.
• It assesses the aggregate effect of the programmes and other activities in terms of deployment of solar energy, performance, reliability, cost and scale of finance.
• Members: 120 countries are signatories to the ISA Framework Agreement, of which 102 countries have submitted the necessary instruments of ratification to become full members of the ISA.
• The Republic of India holds the office of the President of the ISA Assembly, with the Government of the French Republic as the co-president.
• The Seventh Session of the ISA Assembly will deliberate on initiatives of ISA that impact energy access, security, and transitions with a focus on:
  • Empowering Member Countries to adopt solar energy as the energy source of choice
  • Make energy access universal by supporting solar entrepreneurs to scale up local solutions
  • Mobilise finance to speed up solar deployment

What is the International Solar Alliance?

• It was formed at the 21st Conference of Parties (COP21) to the United Nations Framework Convention on Climate Change (UNFCCC) held in Paris in 2015.
• It is an action-oriented, member-driven, collaborative platformfor increased deployment of solar energy technologies.
• Headquarter:National Institute of Solar Energy (NISE) in Gurugram, India.

About West Nile virus:

• West Nile Virus (WNV) is a member of the flavivirus genus and belongs to the family Flaviviridae.
• It was first isolated in a woman in the West Nile district of Uganda in 1937.
• It is commonly found in Africa, Europe, the Middle East, North America and West Asia.
• According to the World Health Organization (WHO), it typically spikes between the summer and autumn months of June and September.
• Transmission: Human infection is most often the result of bites from infected mosquitoes. Mosquitoes become infected when they feed on infected birds, which circulate the virus in their blood for a few days. 
• The virus may also be transmitted through contact with other infected animals, their blood, or other tissues.
• Symptoms:
  • Infection with WNV is either asymptomatic (no symptoms) in around 80% of infected people, or can lead to West Nile fever or severe West Nile disease.
  • About 20% of people who become infected with WNV will develop West Nile fever and symptoms include fever, headache, tiredness, and body aches, nausea, vomiting, occasionally with a skin rash.
• So far, 19 countries, including Albania, Austria, Bulgaria, Croatia, Cyprus, Czechia, France, Germany, Greece, Hungary, Italy, North Macedonia, Romania, Serbia, Slovakia, Slovenia, Spain and Türkiye and Kosovo have reported outbreaks.
• Treatment: No vaccine is available for WNV and only supportive treatments can be provided to neuroinvasive WNV patients.

About Graded Response Action Plan (GRAP):

• GRAP is a framework designed to combat air pollution in the Delhi-NCR region.
• It was introduced as an emergency response mechanism, and its implementation is triggered when the Air Quality Index (AQI) reaches "poor" levels.
• GRAP is particularly important during the winter months when air quality tends to plummet. 
• Who implements GRAP?
  • The Commission for Air Quality Management (CAQM) in NCR and adjoining areas oversees the implementation of GRAP.
  • It collaborates with the Ministry of Environment, Forest and Climate Change (MoEFCC).
  • The CAQM has constituted a sub-committee for the operationalization of the GRAP.
  • This body includes officials from the CAQM, member secretaries of pollution control boards of Uttar Pradesh, Delhi, Haryana, Rajasthan, the Central Pollution Control Board, a scientist from the IMD, one from the IITM, and a Health Advisor.
  • The sub-committee is required to meet frequently to issue orders to invoke the GRAP.
  • The orders and directions of the CAQM will prevailin case of any conflict between directions issued by the State governments and the CAQM.
• Different stages of GRAP: GRAP consists of four stages, each with targeted actions to be taken by the necessary authorities and agencies. These are the following:
  • Stage I: "Poor" air quality (Delhi AQI: 201-300)
  • Stage II: "Very Poor" air quality (Delhi AQI: 301-400)
  • Stage III: "Severe" air quality (Delhi AQI: 401-450)
  • Stage IV: "Severe+" air quality (Delhi AQI > 450)
    

    What is the Air Quality Index (AQI)?

• AQI is issued by government agencies to gauge air pollution levels and communicate risks to the public.
• It indicates how air pollution can affect health, with higher AQI values indicating more severe health concerns.
• The AQI is calculated based on air pollutant concentrations over a specific period, and the results are categorised into ranges with corresponding health advisories.
• According to the AQI scale, the air quality check between 0 and 50 is "Good", 51 and 100 "Satisfactory", 101 and 200 "Moderate", 201 and 300 "Poor", 301 and 400 "Very Poor", 401 and 450 "Severe" and over 450 as "Severe +".

About Kaizen:

• Kaizen is a compound of two Japanese words that together translate as "good change" or "improvement."
• Kaizen is a Japanese business philosophy that encourages continuous improvement involving employees at all levels of a company.
• The concept of kaizen encompasses a wide range of ideas.
  • Those include making the work environment more efficient by creating a team atmosphere, improving processes and procedures, ensuring employee engagement, and making jobs more fulfilling, less tiring, and safer.
• The goal of Kaizen is to make small changes over a period of time to drive continuous improvement within a company.
  • The Kaizen process recognizes that small changes now can add up to huge impacts in the future.
  • Ultimately, that can mean better quality control, more efficient processes, and the elimination of waste, among other benefits.
• Under Kaizen, improvements can be initiated by any employee at any time.
• The philosophy is that everyone has a stake in the company's success, and everyone should strive, at all times, to help make the business better.

About Third-Party Litigation Funding (TPLF):

• TPLF, often referred to as litigation finance, is a financial arrangement in which a third party (with no prior connection to the litigation) in a legal dispute provides funding to support the plaintiff's pursuit of a legal claim.
• In return, the third-party funder receives a portion of the proceeds if the case is successful.
• Plaintiffs do not have to repay the funding if their lawsuit is not successful.
• This funding model allows entities to bring lawsuits without shouldering the financial risks associated with litigation.
• The emergence of TPLF has been driven by various factors, including the escalating costs of legal proceedings, the complexity of modern litigation, and the desire to level the playing field between parties with disparate financial resources.
• Disputes that attract TPLF generally include commercial contracts, international commercial arbitration, class action suits, tortious claims like medical malpractice and personal injury claims, anti-trust proceedings, insolvency proceedings, and other like claims that have a calculated chance of resulting in a substantial monetary award.
• TPF is not expressly prohibited in India. In fact, several judgments highlight its benefits and express that there is a need for its regulation. 

About Battle of Walong:

• Set during the 1962 Sino-Indian War, it occurred at the easternmost tip of Arunachal Pradesh, near the tri-junction of India, China, and Myanmar.
• As Chinese forces launched a full-scale offensive, Indian troops were tasked with defending Walong, the only advanced landing ground in the region, a vital supply route that connected remote border posts.
• After Tawang, Walong was China’s main offensive in the eastern sector during the war.
• The Chinese had overwhelming numbers on their side—an estimated 15,000 soldiers to India’s 2,500, accompanied by superior weaponry and artillery.
• Yet, despite being heavily outnumbered and outgunned, Indian soldiers displayed remarkable resolve.
• The Indian Army units involved included battalions from the Kumaon Regiment, Sikh Regiment, Gorkha Rifles, Assam Rifles, and Dogra Regiment. 
• Their tenacity and courage managed to hold back the Chinese advance for nearly three weeks, despite dire shortages of ammunition and supplies.
• The battle resulted in significant losses for India, with around 830 soldiers either killed, wounded, or captured.
• Yet, their defence stands as a powerful symbol of the valour and sacrifice of the Indian Army.
• It went down in history as the only Indian counterattack during the 1962 war.