The industry constitutes less than 1% of the global market. However, demand for these products is growing rapidly and investments are flowing in to augment manufacturing capacity.
a) India remains a major importer of electronic materials, components and finished equipment amounting to around $20 billion (Rs84,000 crore now) in 2007. The country imports electronic goods mainly from China
b) In the last four years, production of computers has grown at a compounded annual growth rate (CAGR) of 31%, the highest among the various electronic products in India. This has been followed by communication and broadcast equipment (25%), strategic electronics (20%) and industrial electronics (17%).
c) The consumer electronics segment, which has grown at a CAGR of 10% in the last five years, includes a wide range of products such as DVD, VCD/MP3 players, television sets and microwave ovens.
d) The growth in demand for telecom products has been high, with India adding two million mobile phone users every month, which is one of the main reasons for the growth in production of electronic goods. This growth is expected to continue over the next decade, too.
e) The government has identified electronics and IT hardware manufacturing as one of the thrust areas for development. A special incentive package scheme (SIPS) was announced in March 2007 to attract investments for semiconductor fabrication and other micro and nanotechnology manufacturing industries in India.
f) In the case of exports, the largest share was taken by electronic components, with 47% of total electronic exports. Exports of electronic components have grown at a CAGR of 25% in the last five years.
g) India’s main destination for electronic goods is the US.