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Electronics: March 2013

March, 2013

Indian electronics market is expected to grow from US$ 45 billion in 2009 to US$ 400 billion in 2020.

Electronics goods production in India was valued at US$ 29.9 billion in FY12. Production expanded at a compound annual growth rate (CAGR) of 16.8 per cent during FY07-12. Communication and broadcasting (C&B) equipment made up 28 per cent (the highest share) of total production of electronic goods in India in FY12. Electronic exports from India expanded at a CAGR of 28.9 percent from US$ 8.4 billion in FY11 to US$ 9.3 billion in FY12. The growth was driven by exports of C&B equipment and electronic components.

The sector has attracted strong investments in the form of mergers and acquisitions (M&A) and other foreign direct investment (FDI) inflows. Companies are set to augment investments in production, distribution and research and development (R&D) in the next few years.

The Government of India (GOI) has permitted 100 per cent FDI in the electronics hardware manufacturing sector under the automatic route and also plans to setup dedicated clusters to promote manufacturing of electronic products. The National Policy on Electronics 2012 aims to set up 200 manufacturing hubs across the country with an investment of US$100 billion to meet demand expectations.

Sectoral Presentation (March 2013)

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Past electronics sector reports:
Electronics: November 2012
Electronics: January 2012