India’s exports of electronic goods touched USD 1.67 Billion last month, registering a growth of 33.99% over $1.25 Bn logged in December 2020. During April-December 2021, the sector exports registered a growth of 49% to USD 11.0 Billion (Provisional) over USD 7.4 Billion during the same period in the year 2020. As compared to April-December 2019 (USD 8.8 Billion) and April-December 2014 (USD 4.8 Billion), exports of Electronic Goods registered a growth of 26% and 131% respectively.
Top 5 export destinations in April-November 2021 (latest available share% in bracket) are: USA (18%), UAE (16.6%), China (7.6%), Netherland (4.5%) & Germany (4.2%).
Mobile phones constitute a major chunk of India’s Electronics Goods sector exports. 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 audio devices, and Telecom equipment.
The overall exports of electronics goods in the last financial year was USD 11.11 Billion, and with USD 11.0 Billion exports achieved in the first three-quarters of FY2021-22, the sector is set to break all-time record highs, far exceeding the previous high of $11.7 Bn recorded in FY2019-20.
Steps taken by the Government which are expected to increase the domestic manufacturing and export of Electronics Goods including mobile phones include formulation of Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing, PLI for IT hardware, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), Modified Electronics Manufacturing Clusters (EMC 2.0) under the National Policy on Electronics, 2019, which envisages to position India as a global hub for Electronics, System Design and Manufacturing (ESDM).
Moreover, FDI up to 100% under the automatic route is permitted for electronics manufacturing subject to applicable laws. Phased Manufacturing Programme (PMP) has been notified to promote domestic value addition in mobile phones and their sub-assemblies / parts manufacturing. Tariff Structure has also been rationalized to promote domestic manufacturing of electronic goods, including Cellular mobile phones.
The Ministry of Electronics and Information Technology (MeitY) on Monday, 24th January, released the second volume of a 5-year roadmap and vision document for the Electronics Sector; the first volume was released in November 2021.
The Vision Document lays the roadmap to transform India into a US$300 billion electronics manufacturing powerhouse over the next 5 years, from the current US$75 billion. This will make Electronics Goods amongst India’s 2-3 top ranking exports by 2026. Electronics Goods exports are expected to increase from the projected USD 15 billion in 2021-22 to $120 billion by 2026.