India is one of the largest consumer electronics markets in Asia Pacific Region
The world’s fastest-growing industry, Electronics System Design and Manufacturing (ESDM) continues to transform lives, businesses, and economies across the globe. The global electronics market is estimated to be over $2 tn. India’s share in global electronics manufacturing has grown from 1.3% in 2012 to 3.6% in 2019.
Technology transitions such as the rollout of 5G networks and IoT are driving the accelerated adoption of electronics products. Initiatives such as ‘Digital India’ and ‘Smart City’ projects have raised the demand for IoT in the market and will undoubtedly usher in a new era for electronic products.
- India is expected to have a digital economy of $1 tn by 2025
- One of the largest electronics markets in the world anticipated reaching $400 bn by 2025
- Electronics Manufacturing Industry has committed to reach $300 bn revenue by 2025-26
- India produce over 600 units of mobile phone units every minute which translates into over $ 55 K worth of production in each minute. Moreover, 160 phones are sold online in a minute
100% FDI is allowed under the automatic route.
In case of electronics items for defence, FDI up to 49% is allowed under automatic route and beyond 49% through the government approval.
Domestic electronics market in India to reach $400 bn by 2025
With per capita disposable income and private consumption having doubled in the past 7 years, India has emerged as one of the largest markets for electronic products in the world.
The electronics market valued at $118 bn in 2019-20 is segmented as Mobile Phones (24%), Consumer Electronics (22%), Strategic Electronics (12%), Computer Hardware (7%), LEDs (2%) and Industrial Electronics (34%) comprising of Auto, Medical and other industrial electronic products.
- Over 2.5X growth in domestic electronics production in 5 years; From $29 bn (2014) to $75.7 bn (2019-2020)
- Over 5X growth in production of mobile phones in 5 years; from 60 mn units (2014-15) to 330 mn units (2019-20).
- Domestic Electronic Components market in India for 2019 is $20.8 bn (excluding imported PCB-Assemblies)
- Digital Transactions per capita per annum have increased ~10x in 5 years.
- India is a global R&D destination, with 1140+ R&D Centres of MNCs in India employing 900,000+ professionals
- Export of Electronic Goods was valued at $1146.63 bn in August 2021 with a positive growth of 31.49% over exports of $872.04 bn in August 2020.