Q. Consider the following statements:
Statement-I: India’s electronics components demand is largely met through imports from China.
Statement-II: India’s domestic electronics manufacturing sector is still developing and lacks the capacity to meet the growing demand for electronic components.
Statement-III: China has developed a highly integrated and efficient supply chain for electronics manufacturing.
Which one of the following is correct in respect of the above statements?
Explanation –
Statement-I is correct: India’s electronics components demand is largely met through imports from China. The expansion of India’s electronics production is becoming increasingly dependent on imported components from China and Hong Kong.
Statement-II is correct. India’s domestic electronics manufacturing sector is still developing and lacks the capacity to meet the growing demand for electronic components. The underdeveloped domestic industry lacks the capacity to fulfill the growing demand for components.
Statement-III is correct. China has built a business eco-system that cannot be found elsewhere in Asia. Its developed supply chain benefits manufacturers in both procurement and distribution processes.
Hence, both Statement-II and Statement-III explain Statement-I: India’s developing domestic manufacturing sector (Statement-II) necessitates imports to meet demand. China’s highly integrated and efficient supply chain (Statement-III) makes it an attractive source for these imports.
Source: The Hindu