SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 67

3
NET ZERO IMPORTS

3

ESDM and IT hardware
Within the sphere of manufacturing , the Electronic System
around 45 percent of the total market demand , which leaves a
Design and Manufacturing ( ESDM ) sector holds a prominent
wide demand-supply gap to be filled and provides a significant
place in the Indian economy . The electronics market of India is
opportunity to improve domestic manufacturing capabilities .
one of the largest in the world . Spurred by factors such as
The estimated production will reach USD 104 billion by the year 2020 ,
higher real disposable incomes , easy consumer credit , falling
6 creating a gap of USD 296 billion in demand and production . This is a
prices of the products and their increasing penetration and
serious cause of concern , because growing at this rate , the
growing consumer and industrial base , it is expected that by
electronics import bill is expected to far exceed the oil import
2020 , the market will increase with a CAGR of 66.1 per cent to
costs by 2020 and result in a major balance of payments crisis .
5
USD400 billion from USD31.6 billion in 2015 . Reaching
US $ 400 billion in market size by 2020 is the true potential of
Electronics Demand and Production
India ’ s ESDM industry .
Expected Growth of Indian Electronics Market
400
CAGR-37 %
Demand & Production
450.0 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0
69.6 CAGR-15 %
92.5 0.0
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Year
Value in US $ bn
Production is characterized by low value addition ( 5-10 %)
Demand CAGR-24.4 %
However , domestic electronics production accounts for only
IT hardware sector
India ’ s electronic products industry can be divided into the following broad end-user segments :
Segment
Consumer electronics
Automotive electronics
Industrial electronics
IT systems and hardware
Telecom products and equipment
Other electronics
Products covered
TVs ( CRT and FPD ), DVD players , set-top boxes , home theatre systems , MP3 players , audio equipment , digital cameras and other household appliances
Electric vehicles , power windows , anti-brake locking systems , remote keyless entry , twowheeler ( 2W ) ignition units , flashers , regulators , instrument clusters ( 2W , 4W ), engine management system 4W and car radios
Power electronics , LED lighting , CFL , energy meters , UPS , inverters , weighing scales , power supplies
Desktops , notebooks , tablets , monitors , servers , storage flash memory cards , USB drives , printers / MFDs , mobile handsets
Fixed-line and mobile telecommunication equipment , modems , routers , switches , IP PBX , BTS ( GSM , CDMA ), WiMax ( BTS , CPE ), PON / GPON ONT / OLT and DWDM
Aerospace , strategic electronics including defence , medical electronics and smart cards
IT Products constitute a significant part of the Electronics
across the globe .
7 market in India . Direct and Indirect IT products together
The chart given below shows the split of the IT electronic
contribute close to 20 % of the total market .
products in India and in
This study focuses on
the global IT electronics
a few products from
industry . Though the
US $ Billions %, 2014
the ESDM sector ,
overall industry is worth
100 %
655
17
collectively called IT
more than USD655 billion ,
PCs
12 %
12 %
electronics goods .
India ’ s contribution has
NBs
19 %
17 %
These goods are
been approximately 3 %. In
Tablets
11 %
4 %
smartphones , tablets ,
addition , it is quite
notebooks and
apparent that PCs or
desktops which form
Desktops and Notebooks
Smartphone
58 %
67 %
the backbone of all IT
hold significantly higher
related industries
shares and are bigger
Market size of IT electronics industry : World vs . India
Worldwide India
Spotlight on Indian Electronics 2016 | 67