The demand of electronic products in India is expected to grow at a CAGR (compound annual growth rate) of 41% during 2017-2020 to reach USD 400 billion by 2020. The domestic production which is currently growing at a CAGR of 27% may touch USD 104 billion leaving a huge gap for import to the extent of USD 300 billion, according to the joint study brought out by ASSOCHAM and NEC recently.
Electronics industry valued at USD 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 USD 32.46 billion. This represents a share of about 1.5 per cent in world electronic hardware production. The domestic consumption of electronic hardware in 2014-15 was USD 63.6 billion out of which 58% was fulfilled with imports. With demonetization 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 INR 11,000 crores in June 2014, has increased exponentially to INR 1,27,880 crores in 2016. This is also due to the Government’s efforts to create an enabling policy ecosystem in the sector bringing through initiatives like Make in India and Digital India and providing special focus to schemes like the Modified Special Incentive Package Scheme (M-SIPS) and Electronic Development Fund (EDF). However, even though there are signs of promising growth, the local production of electronic products has to be increased significantly to meet the domestic demand.