The report stated, “building capacity to serve domestic demand only pays off if it’s also cost-competitive enough to export. India faces a material cost disadvantage vs leading exporters, driven by scale, backward integration, technology & policy support gaps, and compounded by limited testing, certification & compliance infrastructure.” To address these vulnerabilities, the joint study identified five strategic priorities: deepening localisation beyond select categories, developing meaningful export scale in premier import markets, strengthening research and product innovation capabilities, deploying artificial intelligence to enhance productivity, and establishing a predictable, enabling regulatory environment. Bill-of-materials localisation across categories currently ranges from 25 to 70 percent, with televisions and air conditioners at the lower end and washing machines and refrigerators at the upper end.
