Electronic Goods

The Indian electronic goods industry forms a small part of the global electronics industry. In the recent years, the domestic electronic goods industry has grown robustly, driven by manufacturing growth, ICT penetration, rising disposable income, retail boom, and attractive finance schemes. Production grew at an impressive during FY07-FY11. In FY12, production was estimated to have increased by about 11.2% y-o-y 18.2% CAGR to 0 ` 1443. bn. However, a large gap in demand and supply exists in this sector. As most raw materials required for manufacturing electronic goods are not available domestically, manufacturers need to import them from countries such as China, Taiwan, and Korea.
Trend in productionbn) electronic goods`( of Segments Consumer electronics Industrial electronics Computer hardware Communication &broadcast equipment Strategic electronics Electronic components Total FY07 200 104 128 95 45 88 660 FY08 226 119.1 158.7 187 57 96.3 844.1 FY09 255.5 127.4 134.9 266 68.4 120.4 972.6 FY10 290 151.6 149.7 310 69.8 136.1 1,107.20 FY11 320 170 149.7 354 77 218 1,288.70 FY12* 343 187 165 405 85 248 1,433.00 Percentage share in FY12 23.9 13.0 11.5 28.3 5.9 17.3 100

*Estimates Source: Department of Information Technology

Industry Structure electronics industry is broadly divided into consumer electronics, industrial electronics, The Indian computer strategic electronics, communication and broadcasting equipment, and electronic hardware, components. As per the FY12 estimates, the communication and broadcast equipment and consumer electronics segmentslargest share comprising 28.3% and 23.9% of the total have the production. 1. Consumer electronics The consumer electronics segment includes products that can be directly used by end-users such as television sets, DVD/MP3 players, and microwave ovens. India has a large manufacturing base for this segment and highly competitive market. Currently, the Indian consumer electronics market is dominated by is a MNCs. A growing middle class, demand for premium and luxury products in the urban markets due to changing lifestyle, and low-end affordable products, drive demand for this consumer segment. of consumer electronics is estimated to have increased 7.2% Production ` 343.0 bn in FY12 as to production of` 320.0 bn in FY11. According to the Department of against the Information Technology, within this segment, colour TVs has the largest revenue share with a market size of 14 mn in 2011. The market crystal display (LCD)/ light-emitting diodes (LED) TV is estimated to increase from 4.0 mn for liquid units in 2011 to 5.5 mn units in 2012, primarily owing to declining prices.forward, higher disposable income and easy availability of finance, increase in digitisation, Going affordable most categories, and establishment of retail chains and growing organized retail, will products in continue growth drivers for consumer electronic to be the goods. 2. Industrial electronics electronics comprises critical hardware technologies and systems with built-in software. Industrial The important devices used in this segment relate to power electronics, medical electronics, and other intermediates such as semiconductors. It is one of the challenging areas that requires high level of technical skill in designing systems for applications in a variety of industrial sectors. India has expertise in conceptualising such systems and erecting and commissioning them. However, this sector largely depends of critical hardware and associated software. Large projects are implemented with on import control & instrumentation packages that are imported without any knowledge of design. Thus, this in most cases,to higher initial cost and maintenance costs in the long run. leads
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In FY12, the total production in this segment was estimated ` 187 bn, as ` 170 bn in FY11, a at against 10.0% growth. 3. Computer hardware one of the fastest-growing hardware markets in the Asia-Pacific region. Most of the prominent India is global have a strong presence in the Indian market. The BFSI (Banking, Financial Services and vendors Insurance), telecom, ITeS (Information Technology enabled Services), manufacturing verticals, Small & Medium Enterprises (SMEs), e-Governance, and households are the key demand verticals for this segment. production in the computer hardware segment for FY12 is estimated to ` 165 bn Domestic increase to from 149.7 bn in FY11, registering a 10% growth. Within this segment, domestic sales of PCs are ` estimated to have grown 10% in FY12 to 10.3 mn units. 4. Strategic electronics The strategic electronics segment includes satellite-based communications, navigation and surveillance, underwater electronic system, infra-red based detection and ranging system, disaster management, system, and Global Positioning System (GPS) based vehicle tracking system. The internal security estimated figure for this segment for FY12 85 bn, a growth of about 10.4% compared with production ` is FY10. Strategic electronics goods are often used by the defense and paramilitary forces. Owing to the need to maintain national and energy security and growth in the domestic economy, Indias defense, aerospace, sectors are expected to grow substantially. According to the report of the Task Force for and nuclear theITES, and Electronics Hardware Manufacturing Industry, India is expected to be one of the top IT, five markets for defense equipment by 2015, driven by geo-political considerations. Moreover, focus by the commercial aircraft manufacturers on low-cost countries, is expected to generate growth in the aerospaceemerging markets in general and India in particular. The civilian nuclear agreement market in between the US and India, will enable commerce and cooperation, in particular allowing India to collaborate with companies on nuclear projects, driving the growth for this global segment. 5. Communication and broadcasting equipment Communication technology is increasingly being recognised as a key driver for economic development. Digital exchanges, transmission equipment, microwave transceivers, satellite communication terminals, communication equipment, and two-way radio communication equipment come under optical fibre the purview of this segment. India has also emerged as one of the fastest growing telecom services markets in world, which has boosted the telecom electronics and equipment manufacturing segment. the Moreover, India is considered as one of the fastest growing markets for global telecom electronics and equipment, such as Alcatel-Lucent, Ericsson, Motorola, and Nokia have established their operations and vendors in India. In the coming years, a growing telecommunications market, underpinned by an increasing subscriber base, growth in rural mobile telephony and increasing broadband penetration, and connectivity wouldgrowth for this drive segment.
Key highlights of FY12 Telephone subscriber base has million. was Wireless reached 951.3 subscription base at 919.2 Wireline million subscribers subscription base stood at 32.2 million Total tele-density reached 78.7% subscription Broadband base was million Total number 22.9 of registered private satellite TV channelswith was 831, number of pay channelswas 168 Source: Telecom Regulatorywhereas, of Authority India

I&B

Ministry

During FY12, the communication and broadcasting equipment segment is estimated to have grown 14.4% ` 405.0 mn. y-o-y to 6. Electronic components The electronic components that are manufactured in India include picture tubes, diodes, transistors, power resistors, capacitors, switches, relays, connectors, magnetic heads, etc. The Indian devices, electronic market is mainly dominated by electro-mechanical components and passive component components. few years, the active components such as integrated circuits, diode, etc. and the But in the past associate components such as optical disc, magnets, radio frequency Tuners etc, have also shown significant growth.
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