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: June, 2017

  • Indian manufacturing sector’s gross value added at basic price based on 2011-12 price series was US$ 311.6 billion in 2016-17, as per the second advance estimates of Central Statistics Office.
  • Manufacturing sector grew at a CAGR of 7.32 per cent between FY12 and FY17.
  • The sector grew 7.7 per cent in FY17
  • The wholesale price index, in respect of manufactured goods grew 2.4 per cent between April 2016 and January 2017.

Note: CAGR - Compound Annual Growth Rate, FY - Indian Financial Year (April to March)
Source: MOSPI

  • The Index of Industrial Production (IIP) is prepared by the Central Statistics Office to measure the activity happening in three industrial sectors namely Mining, Manufacturing, and Electricity.
  • It is the benchmark index and serves as a proxy to gauge the growth of manufacturing in India since manufacturing alone has a weight of 77.63 per cent in the index.
  • The manufacturing component of the IIP recorded 4.9 per cent growth in FY17 while 1.8 per cent growth in Q1 FY18.

Note: FY - Indian Financial Year (April to March)
Source: MOSPI



Last Updated: September, 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.


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