The government of India has taken various measures under the National Policy on Electronics, 2019 to scale up the growth in this sector including Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing and IT hardware, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), Modified Electronics Manufacturing Clusters (EMC 2.0).
As per the press release shared by the Ministry of Commerce and Industry, the export volume is predicted to reach around USD 15 billion in 2021 against USD 11.11 billion in 2020. Indian electronic goods see an export volume of USD 11.0 billion in the April-December period of 2021 as against the USD 7.4 billion in the same period of 2020, according to a press statement released by the Ministry of Commerce And Industry. This interprets to a growth margin of 49% over last year and 26% over the growth margin of 2019.
The top five importers that have helped India touch this export growth margins are U S A (18%), UAE (16.6%), China (7.6%), Netherland (4.5%) & Germany (4.2%). The goods that come under the market range of the sector includes -IT hardware (laptops, tablets), consumer electronics (TV and audio), industrial electronics, auto electronics, electronic components, LED lighting, strategic electronics, PCBA, wearables, and telecom equipment. Amongst these mobile phones remains the top export item.
Indian electronic goods sector has been approaching steady growth in last 6 years. India had recorded an export volume of USD 8.8 billion (April-December 2019) which is nearly double the amount of USD 4.8 billion achieved in the same period in 2014 (April-December 2014). A growth margin of 131% between 2014 to 2020. The overall annual growth rate is also expected to rise exponentially as the financial year is yet to come to an end and the total turnover is predicted to be around USD15 billion.
The overall annual export in the FY 2020-2021 was USD 11.11 billion and USD 11.7 billion in FY2019-20. Additionally, the electronic sector witnessed an export of USD 1.67 billion in December 2021 compared to over USD 1.25 billion in December 2020, a 33% growth. This press statement comes after a five-year vision and roadmap for the electronic sector shared by the Ministry of Electronics and Information Technology (MeitY) on Monday, 24th January.
As per the reports, the central government has a five-year roadmap to transform India as one of the manufacturing powerhouse and top export destinations in the world. The vision lays a target of USD 300 billion units electronics manufacturing by 2026 from the current volume of USD 75 billion. The export volume is also planned to be taken up from a predicted USD 15 billion in 2021 to USD 120 billion by 2026.
