The rapid penetration of internet into the Indian subcontinent has brought about a huge demand for electronic products.
The Government of India attributes high priority to electronics hardware manufacturing, as it is one of the crucial pillars of Make in India, Digital India and Start-up India programmes.
India’s goal of generating US$ 1 trillion of economic value from the digital economy by 2025 will surely bolster the growth of the Indian Electronic Industry. As always, there had been a steep increase in the production of mobile phones and other electronic consumer durables in India.
- In FY20, Electronic goods imports accounted for US$ 50 billion, wherein China and Hong Kong accounted for about US$ 28 billion, or about 57% of India’s total electronic imports.
- India’s exports of electronic goods were valued at US$ 11.7 billion in FY21.
- In India, smart phone shipments reached 150 million units and 5G smar tphone shipments crossed 4 million in 2020, driven by high consumer demand post-lockdown.
- The Indian Electronics system market is expected to witness 2.3 times demand of its current size to reach US$ 160 billion by FY25.
- Electronics design segment is growing at 20.1%, and is anticipated to be 27% of the ESDM market size in FY25.
- In FY20, the production value of mobile devices reached US$ 30 billion from US$ 3 billion in FY15.
- The consumer electronics and appliances industry in India is expected to become the fifth largest in the world by the year 2025.
According to the Department for Promotion of Industry and Internal Trade, from April 2000 to December 2020, Foreign Direct Investment (FDI) equity inflows into the Indian Electronics Industry stood at US$ 3,000.35 million.
As per the Union Budget 2021-22, the Ministry of Electronics and Information Technology has been allocated Rs. 9,720.66 crore
(US$ 1.33 billion). In the allocated budget, revenue expenditure allocation is Rs. 9,274.66 crore (US$ 1.27 billion) and capital
expenditure allocation is Rs. 446 crore (US$ 61.34 million).
The key government initiatives such as ‘Make in India’ and ‘Digital India’ improved the country’s Electronics industry. In 2021-22,
the total budget allocation towards the ‘Digital India’ programme is Rs. 6,806.33 crore (US$ 936.19 million).
Huge investments by public and private stakeholders and a spike in demand for electronic products, the Electronics sector in India is predicted to reach US$ 220 billion by 2025, expanding at 16.1% CAGR between 2019 and 2025.