Electronic market place have become the 6th largest export commodity group as of Mar 2023
With rising per capita disposable income and private consumption, India has emerged as one of the largest markets for electronic products in the world. The domestic production of electronics in FY 2023-24 amounted to a substantial $101 billion, reflecting the industry’s robust growth and pivotal role in the country’s economy. Mobile phones emerged as the dominant segment, accounting for 43% of the total production value. This sector’s prominence can be attributed to the increasing demand for smartphones driven by technological advancements, affordability, and a burgeoning population of tech-savvy consumers.
Consumer electronics represented another significant portion, contributing 12% to the overall production value. This category encompasses a wide range of products such as televisions, cameras, and home appliances, catering to the diverse needs and preferences of consumers across the country. The demand for consumer electronics is influenced by factors like disposable income levels, lifestyle changes, and the desire for convenience and entertainment.
Industrial electronics, comprising 12% of the production value, play a crucial role in various industries, including manufacturing, energy, and telecommunications. These electronics are vital for automation, control systems, and monitoring processes, contributing to efficiency, productivity, and innovation in industrial operations.
Strategic electronics, accounting for 5% of the production value, are essential for defense, aerospace, and other strategic sectors. These electronics include advanced communication systems, radar systems, and electronic warfare equipment, supporting national security and technological advancement.
Auto electronics, representing 8% of the production value, are integral to the automotive industry, powering vehicles with advanced features such as infotainment systems, driver assistance systems, and electric vehicle components. The growth of this segment is driven by the increasing demand for smart and sustainable mobility solutions.
LED lighting, with a 3% share of the production value, highlights the industry’s shift towards energy-efficient lighting solutions. LED technology offers significant energy savings and environmental benefits, driving its adoption in various applications, including residential, commercial, and industrial lighting.
Electronic components, constituting 11% of the production value, are the building blocks of electronic devices, encompassing a wide range of components such as semiconductors, resistors, and capacitors. The demand for electronic components is driven by the growing electronics industry’s need for reliable and high-performance components.
Overall, the diverse segmentation of the electronics industry reflects its dynamic nature and the widespread adoption of electronic devices across various sectors of the economy, underpinning India’s position as a key player in the global electronics market.
