The fast-growing electronics market in India is backed by rapid urbanization and increased incomes. Digitization has led to increased demand for high-end technology devices, escalating the consumption of electronic devices. Furthermore, technology transitions such as the rollout of 4G/ LTE networks and IoT are driving accelerated adoption of electronics products. Initiatives such as ‘Digital India’ and ‘Smart City’ projects have raised the demand for IoT in the market. Similarly, the digital banking sector like wallet players and payment banks will raise demand for POS and VSAT-enabled mobile ATMs, which will further give a fillip to the growing industry.
The electronics manufacturing sector has tremendous growth potential which is still yet to be explored. FDI in electronics in India will result in better technology, increase cash flow and other resources that will help discover this potential to the fullest.
100% FDI in electronic systems sector is allowed under the automatic route.
In case of electronics items for defence, FDI equity inflows in electronics sector up to 49% is allowed under automatic route and beyond 49% through the government approval.
The gaming market in India is expected to reach $801 mn by 2022
Indian IoT market to reach $9 bn by 2020
Fastest growing smartphone market in Asia Pacific
Electronics market in India is projected to reach US $ 228 bn by 2020 from over $ 100 bn in 2016-17
Nearly 70-80% of the electronic components market is imports driven. The electronics products segment contributed 82% to the overall market in 2015, and the rest comprised electronic components
The Electronic Products industry in India was valued at $61.8 bn in 2015
The Electronic component industry was valued at $ 13.5 bn in 2015; of which Electro-mechanical segment had the highest share at 30%. Passive and active segments handled 27% and 22% share, respectively, while remaining market of 20% was handled by the Others segment
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