Indian Economy News

Electronics cos charged up for big revenue boost, set to double revenues to US$ 55 billion by FY27

  • IBEF
  • June 11, 2024

India's domestic Electronics Manufacturing Services (EMS) industry is on track to exceed US$ 55 billion by FY27, doubling its current revenues, driven by a surge in localized component sourcing. Global tech giants such as Apple, Samsung, Lenovo, and others are expanding their footprint in India. Apple's projected US$ 40 billion investment over the next 4-5 years and Samsung's plans to manufacture laptops alongside smartphones underscore this trend. Lenovo aims to capitalize on the Production-Linked Incentive (PLI) scheme for IT hardware by producing servers locally. Acer, HP, Nokia, and other international players are also scaling up operations in India. The total addressable market for domestic EMS players is estimated to reach US$ 100 billion by FY27, buoyed by decreased imports of finished goods and increased component production.

Despite a slowdown in imports of finished goods like mobiles, TVs, and ACs, India's electronics industry remains dependent on imports, particularly for key components. From US$ 25 billion in FY13 to US$ 100 billion in FY23, the sector's revenue has surged, propelled by advanced manufacturing capabilities and governmental initiatives such as customs duties and production-linked incentive schemes. Projections suggest that India's electronic manufacturing sector will claim a larger global revenue share, projected to reach US$ 900 billion by CY31. Industry leaders stress the importance of policy continuity and introducing new initiatives like PLI schemes for components and wearables to sustain growth momentum. Chairman of the India Cellular and Electronics Association, Mr. Pankaj Mohindroo, advocates for a mission-driven strategy to quadruple the sector's output over the next five years, emphasizing the need for a conducive regulatory environment to foster innovation and growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.