India’s success in manufacturing exports, particularly in electronics, autos, and renewables, depends on trade in intermediate and capital goods. Our trade data demonstrates this simple truth. Take for instance smartphone exports. In FY25, they totalled $25 billion, a 55% rise over FY24.

Smartphone parts (HS Code 851779) imports also grew from $11 billion to $15 billion. Over 50% of these imports come from China. Imports of integrated circuits (ICs) have also been rising steadily, as have the imports of displays, cameras, memories, and storage, all essential to modern electronic devices such as phones, laptops, tablets, and televisions.

The recent moves to abolish quality control orders (QCOs) across sectors such as steel, metals, chemicals, and machinery also reflect the understanding that to export, we must also import.

Chinese firms themselves embody this logic—China is the world’s largest semiconductor importer, with an estimated $250-300 billion in semiconductor imports alone, exceeding its oil imports.

India has built strong capabilities in design, talent, and large-scale manufacturing. Labour law reforms position the country well for the next wave of labour-intensive manufacturing growth. Achieving rapid scale in sectors such as electronics, batteries, and renewables will require completing our domestic strengths with global capital, technology, and know-how.

Deeper integration in global value chains will help Indian firms move into higher-value manufacturing and upskill our workforce. At the same time, specific sectors, such as infrastructure, banking, power, defence, etc. carry national security implications and require strong domestic........

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