With per capita disposable income & private consumption having doubled in the past 7 years, India has emerged as one of the largest markets for electronic products globally. The electronics market valued at $118 billion in 2019-20 is segmented as Mobile Phones (24%), Consumer Electronics (22%), Strategic Electronics (12%), Computer Hardware (7%), LEDs (2%) & Industrial Electronics (34%) comprising of auto, medical & other industrial electronic products. India has witnessed more than double growth in domestic electronics production within 6years from $29 billion in 2015 to $67 billion in 2021. The growth in domestic production of mobile devices has been more than 5 times in 5 years. India is a global R&D destination, with 1140+ R&D centers of multinationals in India employing more than 0.9 million professionals
100% FDI
allowed under
automatic route
Current Scenario
- FDI inflows in the sector during April 2000 –December 2021 stood at $ 3.19 billion
- The global electronics market is estimated to be over $ 2 trillion. India’s share in global electronics manufacturing has grown from 1.3% in 2012 to 3.6% in 2019
- India produces roughly 10 mobile phones per second which translates into $930 worth production every second
- Indian electronics market is worth $118 billion & generated 16.5 million direct & indirect employment during 2019-20
Investment Opportunities
- Automotive Electronics -Engine control & advanced driver assistance systems, infotainment / navigation
- Medical devices -Remote patient monitoring, handheld portable healthcare devices
- IT office automation -E-governance & ‘Digital India’ to boost IT hardware
- Emerging Technologies -Utilization of 5G, AI, machine learning providing impetus to creation of advanced multi-utility electronic products
- Miniaturization of larger devices & parts, localization of supply chain, industrial automation & IoT-based advanced analytics
Why Invest?
- Consumer base of 1.3 billion people engaged in rapid urbanization & digitization with increasing penetration of electronic products
- New schemes for promotion of electronics manufacturing –SPECS, PLI, EMC 2.0, semiconductors
- Initiatives such as ‘Digital India’ & ‘Smart City’ projects have raised the demand for IoTin the market which will definitely usher in a new era for electronic products
- 3rd largest startup ecosystem with new innovations, designs & technology propelling digitization within the country. Robust R&D ecosystem, rollout of 5G, industrial use of IoT technology
Read Ahead
- Indian Electronics industry is anticipated to reach $ 400 billion by 2025. Digital economy of $1 trillion expected by 2025. Electronics System Design & Manufacturing (ESDM) sector is expected to generate $100 -130 billion in economic value by 2025
- More than 900 million internet subscribers expected by 2025. Digital media, smart cities, cloud computing, better connectivity, solar projects, etc. are likely to be the growth factors for the industry going forward
