NEW DELHI: The demand of electronic products in India is expected to expand at a compound annual growth rate (CAGR) of 41 per cent during 2017-2020 to reach $ 400 billion by 2020, but the government has to help domestic production.
The local production of electronic products has to be increased significantly to meet the domestic demand. The industry suggest the government to focus on both infrastructural as well as at the policy level, increased emphasis has to be provided for increasing the percentage of local component manufacturing in India. This includes simplifying the complex regulatory structure for making compliance easier for new entrants and developing a participatory approach.
A joint Study by ASSOCHAM and NEC (which provides product development, global product maintenance and global business enablement services) says India can become a manufacturing hub only with increased domestic production. Demand for electronic products in India is poised for significant growth in the next few years, driven by a strong economic outlook.
The domestic production which is currently growing at a CAGR of 27 per cent may touch $ 104 billion leaving a huge gap for import to the extent of $ 300 billion. The study says the electronics industry valued at $ 1.75 trillion is the fastest growing industry globally.
The Indian electronics and hardware market grew by 8.6 per cent Year on Year to reach $ 75 billion in 2015, driven by rising local demand. The worldwide electronics industry was valued at around $ 1.86 trillion in 2015.
With a growing middle class population, disposable income has led to increased consumer demand for electronics products specially advanced TV’s, mobile phones and computers. This surge in demand is huge which shows a positive outlook for the industry.
The Electronics industry valued at $ 1.75 trillion is the largest and fastest growing industry in the world, highlighted the study.
India’s total electronics hardware production 2014-15 is estimated at $ 32.46 billion - representing a share of about 1.5 per cent in world electronic hardware production. The domestic consumption of electronic hardware in 2014-15 was $ 63.6 billion out of which 58 per cent was fulfilled with imports. With demonetisation adding to the demand for POS devices and mobile phones, this demand is going to increase manifolds.
The investments in electronic manufacturing which was just Rs 110 billion in June 2014 has increased to Rs 1278.8 billion in 2016.
Initiatives such as 'Make in India' and 'Digital India' and specially focusing on schemes such as the 'Modified Special Incentive Package Scheme' (M-SIPS) and 'Electronic Development Fund' (EDF) has helped this growth.
