Electronics Market Expected to reach $400B in India

The demand for the electronic goods in India is anticipated to grow at a Compound Annual Growth Rate (CAGR) of 41% during the year 2017-20 t...

The demand for the electronic goods in India is anticipated to grow at a Compound Annual Growth Rate (CAGR) of 41% during the year 2017-20 to reach $400 billion (INR 25,788.56 Billion) by 2020, according to a joint study by industry lobby Assocham and NEC Technologies. The domestic manufacturing of electronic products which is currently growing at a CAGR of 27% may touch $104 billion, leaving a major gap for import to the extent of $300 billion (INR 19,344.51 Billion). As the India is becoming home for the middle-class people, the increased income has led to increased consumer demand for electronics goods especially advanced mobile phones, TVs and computers. This efflux is huge which shows a positive outlook for the industry, the study said. The study points that domestic production requires to meet the government's vision of turning India into a manufacturing hub. The Indian electronics and hardware market grew by 8.6% year-on-year to reach $75 billion (INR 4,836.13 Billion) in 2015, driven by rising local demand, according to the study.

The industry suggests that the government to focus on both infrastructural as well as at the policy level, increased importance has to be provide for increasing the percentage of local element produced in India.