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India's Electronic Manufacturing Industry Set For 41% Annual Growth Until FY26: Report

Updated: Apr 12, 2024 04:55:01pm

India's Electronic Manufacturing Industry Set For 41% Annual Growth Until FY26: Report

New Delhi, Apr 12 (KNN) India's electronic manufacturing industry is poised for remarkable growth, projected to expand at an annual rate of 41 per cent until the fiscal year 2026, according to a recent report by Equirus Securities.

This robust growth forecast is attributed to a confluence of factors, including the government's concerted efforts to establish India as a hub for electronics manufacturing, evolving global trends in manufacturing, and the presence of skilled labour within the country.

The report estimates that by FY26, the Indian electronic manufacturing industry will reach a valuation of Rs 5,980 billion, a significant increase from its Rs 1,069 billion valuation in 2021.

The report underscores a global shift towards India, with companies adopting the "China+1" strategy to diversify their manufacturing bases.

This trend, coupled with the Indian government's allocation of Rs 760 billion for electronic manufacturing and the introduction of incentive schemes, is expected to provide a significant boost to the sector.

However, despite the positive growth outlook, the report notes a decline in electronic exports from India due to increased domestic consumption. India, a net importer of electronics, particularly laptops and TVs, has seen China and Hong Kong account for 44 per cent and 16 per cent of its total electronic imports, respectively.

On the export front, mobile phones and Electronic Control Units (ECUs) dominate India's electronic exports, with the United States and the UAE emerging as major export destinations.

Experts suggest that India's electronic manufacturing sector is undergoing a transformative phase, positioning the nation as a global hub for electronics production.

This transformation is expected to drive economic growth, create employment opportunities, and foster technological innovation nationwide.

(KNN Bureau)


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