India's Electronics Manufacturing Poised to Reach $250 Bn Value Within 5 years

New Delhi, Jun 20 (KNN) India is rapidly emerging as a global electronics manufacturing hub, with the sector expected to reach a staggering USD 250 billion in value within the next five years, according to media reports.

This remarkable growth trajectory is fuelled by several key factors, including government initiatives, technological advancements, and rising domestic demand.

Currently, India's electronic exports stand at an impressive USD 125 to USD 130 billion, a figure that is poised for substantial growth.

The government has recognised the sector's immense potential and is actively working to address the issue of unemployment by creating jobs in electronic manufacturing.

At present, the industry employs approximately 25 lakh (2.5 million) people, and the government aims to double this figure in the next five years.

Driving this surge in electronics manufacturing is the accelerated adoption of cutting-edge technologies, such as 5G networks and the Internet of Things (IoT).

As per Invest India, these technological transitions are propelling the demand for electronic products. "Initiatives such as 'Digital India' and 'Smart City' projects have raised the demand for IoT in the electronics devices market and will undoubtedly usher in a new era for electronic products," the agency stated.

India's domestic electronics production has witnessed remarkable growth, expanding at a compound annual growth rate (CAGR) of 13 percent, from USD 49 billion in FY17 to USD 101 billion in FY23.

This upward trajectory shows no signs of slowing down, with electronic goods exports in April 2024 recorded at USD 2.65 billion, a substantial 25.80 percent increase compared to the USD 2.10 billion registered in April 2023.

According to the India Cellular and Electronics Association (ICEA), mobile phone production has surged from Rs 18,900 crore in 2014-15 to an estimated Rs 4.10 lakh crore in FY24, marking a staggering 2,000 percent increase.

With its vast domestic market, skilled workforce, and proactive government policies, India is well-positioned to become a global powerhouse in electronic manufacturing.

(KNN Bureau)