Current trends in Indian Electronics Industry
                     Current trends in Indian Electronics Industry
B.K Vijay 
Experienced writer at Hyderabad india online 
(HIOC), writes on real estate, maps, 
telugu sarees and hyderabad sarees  under 
shopping.
The Indian electronics industry is growing at a rapid pace as electronics 
become more and more common place across a variety of gadgets in use.  
There are many changing trends in the Indian electronics industry which are 
quite obvious.
The electronics industry is classed into three sub-sectors: Electronic products, 
EMS (Electronics manufacturing services), and Electronic components. When 
the Indian market is taken into consideration, the sub-sector of electronic 
components is the major one.
 The employment opportunities in the electronics component sub-segment 
are the highest, in comparison with the other two sub-sectors.
 The bill of materials (BoM) of the electronic component sub-sector is almost 
half of the total electronic devices cost.    
 The Indian electronics sector’s present value is approximately US$ 11 billion 
(Rs 82,500 crores). The Indian electronics sector is projected to grow very 
rapidly in the near term and is expected to grow very rapidly to be valued at 
about US$400 billion(Rs.30 Lakh Crores), by the year 2025. So by then, the 
value of the sub-segment of component manufacturing has to be around 
US$200 billion(Rs.15 Lakh Crores). These are ambitious projections for sure.
 Presently, the indigenously manufactured components constitute only one-
third of the entire electronic components used in India. The majority of these 
components come from PCB assemblies and imports.   
Let us have a look at some of the other key points related to the overall 
electronics industry of India.
 The Indian electronic sector is yet to reach the higher end, for most of its 
operations are confined to electronic product assembly.
 As of now, most of the governmental policies are aimed only at reducing 
duty on imports of electronic products/components. Much focus is not there 
on developing the manufacturing base. 
 Till about two years back, the electro-mechanical components like 
connectors and PCBs were the dominant ones in the industry. There was 
good demand for capacitors and resistors, as well, which come under the 
category of passive components. 
 Since of late, the scenario of the Indian electronics markets has changed. An 
increase in demand has been witnessed, about associated components and 
active electronic components.
        
 Currently, not many consumers are opting for offerings like DVDs/CDs and 
cathode ray picture tubes. It’s interesting to note that these were the 
products that enjoyed the highest demand in the electronics market of the 
subcontinent, in recent times.
 There is now a huge volume of exports from India encompassing 
entertainment electronics, display technologies, and optical storage devices, 
etc.
 Simultaneously, India’s over-dependence on imports from the USA and China 
also needs to be highlighted. It has been observed that electronic 
components to the tune of nearly 80% are being imported from these two 
countries.
        
China manufactured invasion and push-back from Indian domestic 
manufacturers
Around a decade back, China entered the Indian market and started to sell 
electronic products. But, as a war-like situation is now there between the two 
countries, the presence of China in Indian market is treated as a major risk. The 
Indian Premier League has also removed the brand Vivo from the list of its 
sponsors. And recently, even the Government of India banned numerous 
Chinese apps. The same pattern is expected to be seen even in the electronics 
industry. 
        
On account of all these efforts, the day is not distant when the markets of our 
country would be free from products and services originating in China. IP Theft 
and lack of respect for IP is one more reason for avoiding Chinese 
manufactured products, even a pro-China country like Russia recently stopped 
the S-400 delivery due to cyber attacks originating from China on its defense 
research institutions.
        
Indigenization and domestic manufacture of electronics
There is a lot of emphasis on indigenization and domestic manufacturing in 
India. The rise of Indian market has also offered an opportunity as the 
economies of scale are possible.  With each passing year into the future, more 
domestic manufacturing is possible in electronics providing many jobs for 
highly educated and not so educated.
        
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