Trade Analytics
Manufacturing Sector in India
The capital goods industry employs 1.4 million of people and is estimated to employ 2.8 million by 2017.

Indian Chemicals and Electronics Industry Analysis

Latest update: February, 2017

Electronics exports have outpaced total production

  • Cumulative FDI inflows into the electronics sector, including computer hardware and software, increased at a CAGR of 13.56 per cent, with the value increasing from US$ 9.8 billion in FY10 to US$ 21.02 billion in FY16
  • Demand growth, supply advantages, and policy support have been instrumental in attracting FDI
Growth
Growth
Growth

 

Last Updated: February, 2017

The electronics market in India is one of the largest in the world and is anticipated to grow at a compound annual growth rate (CAGR) of 66.1 per cent from US$ 31.6 billion in 2015 to US$ 400 billion in 2020. Some key factors behind this growth in the electronics market are - rising disposable income, changing lifestyles, and easier access to credit.

Government is working on an export-oriented policy for Electronic products. The idea behind this policy is to promote greater exports of electronics and drive larger investments by setting up port-based electronic manufacturing clusters.

The Government of India has been supportive towards this growth. It set up Electronic Hardware Technology Parks (EHTPs), Special Economic Zones (SEZs) and brought about a favourable climate for Foreign Direct Investment (FDI). The government has also increased liberalisation and relaxed tariffs to promote growth in the sector. In addition, it has given the nod to Modified Special Incentive Package Scheme (MSIPS) under which the central government will be offering up to US$ 1.7 billion in benefits to the electronics sector in next five years.

The growing customer base and the increased penetration in consumer durables segment have provided enough scope for the growth of the Indian electronics sector. Also, digitisation of cable could lead to increased broadband penetration in the country and open up new avenues for companies in the electronics industry.

Sectoral Presentation (February, 2017)

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