Indian Electronics & Hardware Industry: Fueling the Growth of Capacitors in India
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ndian electronics & hardware industry overview
Electronics & hardware sector includes electronic products & components. Indian electronics & hardware market grew by 8.6% YoY. Rising consumer demand for electronics products can be attributed to growing middle class, rising disposable incomes, declining prices of electronics, & numerous GoI initiatives such as widespread broadband connectivity & e-governance programs. The electronics products segment contributed 82% to the overall market in 2015, & the rest comprised electronic components. On the supply side, the domestic manufacturing of the Indian electronics & hardware picked up in 2015, as more global & domestic CoS expand their manufacturing base in the country. During 2013–15, the domestic manufacturing of electronics has catered to an increasing share of local demand. However, local value addition is still limited as majority of manufacturing is final assembly in the country. The Indian electronics & hardware industry is expected to grow at a CAGR of 13%–16% during
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2013–18 to reach US$ 112–130 bn by 2018. However, given the local manufacturing state, the dependence on imports is likely to remain similar. Hence, the focus on growing India’s electronics manufacturing capability is increasing due to widening demand-supply gap. Although India’s electronics & hardware industry is growing at a robust rate, majority of the demand is met through imports. Around 50-60% of the demand for electronic products is fulfilled through imports, while nearly 70-80% of the electronic components market is imports-dependent. Growing reliance on imports for electronic components & rapidly increasing demand for electronic products is making it indispensable to grow & strengthen India’ s electronics manufacturing capabilities. Realizing the need, GoI is increasing its focus on this sector & aims to transform it from a predominantly consumption-driven market to the one with manufacturing capability to cater to local & overseas demand while focusing on producing high-value add electronic products. The “Make in India” campaign has given a strong impetus to the Indian electronics sector. ||www.electricalmirror.net||