Economic Survey: Electronics market still 4% of global pie

India has made strides in boosting domestic electronics manufacturing, with programmes like Make in India and Digital India playing crucial roles. The domestic production of electronic goods grew significantly, with a remarkable reduction in smartphone imports. However, the industry has focused primarily on assembly, with limited advancements in design and component manufacturing, representing only 4% of the global market. India has made limited progress in design and component manufacturing in the electronics space with the industry having largely focused on assembly. As a result, India’s electronics market still represents only 4% of the global market, despite programmes such as Make in India and Digital India that have boosted domestic manufacturing and drawn foreign investments, the economic survey said.

The survey highlighted India’s electronics sector has been dynamic regarding domestic production, exports and imports in the last decade and the domestic production of electronic goods has increased from ₹1.90 lakh crores in FY15 to ₹9.52 lakh crores in FY24, growing at a compounded annual growth rate of 17.5%. “The country has also drastically reduced its dependence on smartphone imports, with 99% now manufactured domestically,” the survey pointed out. In FY24, the country produced approximately 330 million mobile phone units, with over 75% of the models being 5G enabled. “The key drivers of growth have been the large domestic market, the availability of skilled talent and low-cost labour,” it said.

Programmes such as Make in India and Digital India, along with improved infrastructure, ease of doing business and various incentives, have boosted domestic manufacturing and drawn foreign investments. The industry has largely focused on assembly, with limited progress in design and component manufacturing,” the survey said. The production-linked incentive scheme has empowered domestic manufacturing of electronics. “The results are evident, in FY15, mobile phone imports accounted for 78% of the market in value terms, whereas by FY23 this figure had dropped to just 4%,” the survey said.

Source : https://economictimes.indiatimes.com/industry/cons-products/electronics/economic-survey-electronics-market-still-4-of-global-pie/articleshow/117802426.cms?from=mdr