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 Electronics Industry Analysis

Latest update: September, 2016

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: October, 2016

The electronics market of India is one of the largest in the world and is anticipated to reach US$ 400 billion in 2022 from US$ 69.6 billion in 2012. The market is projected to grow at a compound annual growth rate (CAGR) of 24.4 per cent during 2012-2020.

Total production of electronics hardware goods in India is estimated to reach US$ 104 billion by 2020. The communication and broadcasting equipment segment constituted 31 per cent, which is the highest share of total production of electronic goods in India in FY13, followed by consumer electronics at 23 per cent.

Electronic exports from India was expected to reach US$ 8.3 billion in FY13, a CAGR of 27.9 per cent during FY07–12. Technological improvements and competitively cost effectiveness are main drivers for demand of Indian electronics products abroad.

The Government of India has set up Electronic Hardware Technology Parks (EHTPs), Special Economic Zones (SEZs) and a brought about a favourable climate for foreign direct investment (FDI). It has also increased liberalisation and relaxed tariffs to promote growth in the sector. In addition, the government gave its green signal to the 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 has 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 (October, 2016)

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