Abstract
This chapter briefly discusses Indian electronics industry, followed by a discussion on the literature on determinants of productivity. The Indian electronics industry has a 2.3 per cent share in India’s GDP, while the overall manufacturing share is below 20 percent. Given the importance of the electronics industry as an independent contributor to the growth of the economy and the input contribution to other sectors, the growth and productivity performance of this industry are crucial from the point of the overall growth of the economy. The electronics industry holds strategic importance at firm-(or country-) level with extensive usage in military, space and security systems, and partly explains the inter-firm (or country) competition to innovate, acquire and maintain the technology gap. The electronics industry is highly capital-, skill-and scale-intensive. It requires specialized materials and components leading to emergence of GVCs, such that manufacturing and knowledge production are spread across geography.
