The Indian electronic products market is expected to reach US$ 112 to US$ 130 billion by 2018, growing at a CAGR of 13 to 16 per cent during 2013-18, according to an ASSOCHAM-Ernst & Young (E&Y) study. The same study finds that the electronic components industry in India, valued at US$ 13.5 billion in 2015, stand to gain significantly.
The Indian electronic component market is dominated by electromechanical components (like relays, switches,PCB and connectors, etc.) contributing around 30% of the total demand. The manufacturing of electromechanical and passive components are relatively old and mature in the country. But the need of the hour is to increase the share of the domestic high value electronics components, such as diodes, transistors, integrated circuits, light-emitting diodes, etc. Make in India campaign has certainly elevated the morale of the India local electronics components manufacturer, though the fact remains that a majority of high value and critical components are still imported. Indian manufacturers find major competition from countries such as China, Japan, Indonesia, Malaysia and Taiwan, etc.
In the modern India, all the necessary driving factors exist to provide the boost to electronics manufacturing market in India. The NDA government’s various initiatives, Digital India, Smart Cities, wider broadband connectivity, e-governance programmes and so on are giving the impetus to the market growth of 4G/LTE networks and the Internet of Things (IoT). High-end technology devices are going to witness the demand as the Indian society experiences technology-driven transformation.