The Indian Electronic Components Manufacturing Industry: Sunny Days Ahead

The growth of the electronic components manufacturing industry is crucial for the Make in India programme. The more developed the domestic EMS industry becomes, the faster and easier it will be for large original equipment manufacturers (OEMs) to set up operations here. Lets take a look at where this industry is headed.

The Indian electronic systems de-sign and manufacturing (ESDM) industry is on its way to achieving its full potential in terms of both production and design capabilities. For the first time, India’s domestic electronics production exceeded imports in 2016-17. According to government sources, the domestic production of electronic goods for 2016–17 stood at US$ 49.5 billion, higher than the US$ 43 billion spent on imports. This indicates that the ‘Make in India’ initiative is beginning to have a positive impact on domestic manufacturing. Favourable business policies for the domestic electronics sector have undoubtedly played their part, particularly in facilitating the setting up of manufacturing facilities for smart phones, set-top boxes, televisions and other appliances. This presents an opportunity to the electronic components manufacturing industry of the country. Over the next five years, accelerated local manufacturing of electronic products to cater to growing domestic demand will drive the market for electronic components in India.

Market scenario