Currently, the electronics import bill for India is the second-highest after petroleum and petroleum products
India Electronics and Semiconductor Association (IESA) expects the electronics sector’s contribution to the GDP to double in a couple of years, as the government increases it efforts to boost electronics components manufacturing in the country.
IESA Chairman Rajeev Khushu said that with series of government interventions like PMP, SPECS and PLI, India is set to become the global hub for electronic products and with an economy of this size it is important for the country to have its own component manufacturing and echo system.
“This sector today contributes 3.4 per cent to GDP and is expected to contribute 6.4 per cent in the next few years,” Khushu said.
Currently, the electronics import bill for India is the second-highest after petroleum and petroleum products.
The government has released a number of policies towards significantly increasing India’s domestic electronics manufacturing and is continually improving on these policies.
As per data available from Invest India, the agency responsible for investment promotion in India, electronic component production has risen by as much as $4 billion from 2014 to 2018.
While the global market for electronic components is expected to reach $191.8 billion by 2022, India’s share in global electronics manufacturing has grown from 1.3 per cent in 2012 to 3.6 per cent in 2019.
Growth in the Indian electronic components market is driven by rising domestic demand and a growing electronics ecosystem coupled with initiatives like ‘Make in India’ and ‘Digital India’. This has resulted in the Indian Electronic Components Market increasing from $11 billion in the financial year 2009-10 to $20.8 billion in the financial year 2018-19, showing an annual growth rate of around 7 per cent.
“With the median age of India in the twenties the consumption of electronics is growing at a CAGR of 15 per cent for next few decades and as a result, we will leap into top 3 countries in the ESDM consumption and top 5 countries in electronics production,” Khushu added.
The Indian electronics markets is considered one of the largest in the world and is expected to hit $400 billion by 2025.
