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Electronics and IT Hardware

Introduction
Funds
schemes
India Market Overview
Investments & trends
Government Initiatives
Explore Career Opportunities

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Introduction

When the electronics industry advances, the rest of the world follows suit. Every day, the world’s most groundbreaking technologies arrive in deceptively small electronics boxes, transforming civilization as they become more mainstream.

India is currently witnessing a digital revolution, which is resulting in an increase in the usage of electronic devices. The burgeoning middle-class population, rising disposable incomes, and falling electronics prices in the country are all contributing to the country’s progress. In addition, India, particularly in the Asia-Pacific area, has long been one of the world’s largest importers of electronic goods.

India has already begun to see beginning activity with increasing production and assembly operations across products such as mobile phones and other consumer electronics, thanks to several government efforts aimed at boosting domestic manufacturing.

With this surge in electronic product demand, India’s ESDM sector is expected to reach US$ 220 billion by 2025, growing at a 16.1 percent compound annual growth rate (CAGR) between 2019 and 2025. By 2025, India’s EMS sector is expected to be worth US$ 152 billion. The high internet penetration rate in India, as well as the country’s position as the world’s second-largest smartphone manufacturer, has enhanced electronic product adoption, which is driving the ESDM industry. The Indian government wants to encourage and attract investment in semiconductor FABs (fabrication plants). India is home to more than 90% of the world’s semiconductor research and development centres.

Many government efforts, such as ‘Make in India,’ ‘Digital India,’ and ‘Start-up India,’ have made electronics manufacturing a critical pillar. The ESDM sector is critical to the government’s goal of producing one trillion dollars in economic value from the digital economy by 2025.

In 2018, India’s smartphone shipments topped 150 million units, with 5G smartphone shipments exceeding 4 million in 2020.

Funds

Electronics Development Fund (EDF), and Manufacturing Clusters are all targeted at encouraging electronics and IT hardware manufacturing, and the government has set out Rs. 2,631.32 crore to promote them.

Schemes

Three new programmes for the electronic industry have been unveiled by the government in order to establish India as a global centre for the ESDM sector. The Production Linked Incentive Scheme (PLI), the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and the Modified Electronics Manufacturing Clusters scheme are examples of these programmes (EMC 2.0). As part of the PLI scheme, Rs. 420 billion will be offered as a 4-6 percent incentive on increased sales (of locally manufactured goods) for a five-year term.

The Union Cabinet accepted a proposal in May 2021 to implement the PLI plan ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ with an outlay of Rs. 18,100 crore to attain production capacity of 50 GWh of ACC and 5 GWh of ‘Niche’ ACC.

ACC battery manufacture represents one of the most significant economic potential for growth industries such as consumer electronics, electric cars, and renewable energy.

India Market Overview

In 2020, India’s electronic imports would total US$ 50 billion, with China and Hong Kong accounting for US$ 28 billion each. In 2021, India’s electronic goods exports were valued at $11.7 billion. Electronic products exports totaled US$ 950.17 million in May 2021. In 2020, smartphone shipments will have surpassed 150 million units, with 5G smartphone shipments exceeding 4 million. By FY25, the electronic system market is predicted to grow by 2.3 times its current size, reaching US$ 160 billion. With a growth rate of 20.1 percent, electronic design is predicted to account for 27 percent of the ESDM market size in FY25. Mobile device production value will reach US$ 30 billion in 2020, up from US$ 3 billion in FY15. By 2025, India’s consumer electronics and appliances market is predicted to be the fifth largest in the world.

Investments and Trends

In the ESDM sector, there have been a number of significant investments and developments. As of March 2021, 19 companies had filed for the production-linked incentive (PLI) scheme for IT hardware. Over the following four years, the strategy is estimated to create Rs. 160,000 crore in total production. IT hardware firms have asked a total output of Rs. 135,000 crore, while domestic firms have proposed a total output of Rs. 25,000 crore. AIWA, a Japanese electronics brand, will relaunch in April 2021 with five items in the TWS (True Wireless Stereo) and audio divisions, totaling US$ 10 million in investment. Panasonic Life Solutions India announced this year that it will invest Rs. 600 crore to develop a new electrical appliance manufacturing facility in Sri City, Andhra Pradesh. Amazon has announced that it will begin producing devices using Cloud Network Technology in Chennai, India. Last year, Lenovo said that it would begin producing tablets in India and treble its laptop output. In July of this year, C4V, a US-based lithium-ion cell manufacturer, invested $537.15 million in Karnataka’s electric battery manufacturing sector.

Government Initiatives

MeitY has been granted Rs. 9,720.66 crore in the Union Budget 2021-22. The total budgetary allocation for the ‘Digital India’ programme in 2021-22 is Rs. 6,806.33 crore. MeitY will create a quantum computing applications lab in the country, in conjunction with Amazon Web Services, to speed quantum computing-led research and development and enable new scientific breakthroughs. 

Innovation, which is defined as the constant improvement of current items and the blending of these products to produce new commodities, drives the Consumer Electronics business. As a result, many of the gadgets in this market serve many purposes (for example, smartphones can be used as cameras, radios, and so on), and in order to achieve a consistent segmentation, the focus is on their primary function. Increasing technological improvements in consumer electronics such as computers, cellphones, earphones, speakers, and headphones are expected to boost the consumer electronics market’s growth. The application of disruptive technologies like machine learning, artificial intelligence, and the Internet of Things enhances the product’s functionality even further. Over the projection period, increased demand for energy-efficient appliances with a variety of features would raise consumer electronics market share.

Consumer electronics gadgets and devices are becoming an increasingly important element of our daily lives. We want to improve our lives by making them smarter, faster, and easier.

With the introduction of current products and consumer technology, the Consumer Electronics (CE) business is evolving at a rapid pace. Consumers are getting more savvy, and they expect new items to be as efficient as possible. To appeal to today’s consumers, industry participants must be customer-centric and provide seamless and tailored products.

Consumer Electronics Trends – The Indian home appliances and consumer electronics market is predicted to develop at a CAGR of 10% till 2022, according to a PwC analysis. The Make in India initiative has bolstered India’s consumer electronics design and manufacturing industries, and the industry is expected to develop dramatically over the next five years. One of the reasons for the rise in demand and sales of consumer goods and electronics is e-commerce.

Smartphones, wearables, video game consoles, in-home appliances, vehicles, Bluetooth enabled audio equipment, storage devices, and charging stations will be the most successful categories in today’s developing Consumer Electronics Industry. For the overall success of a product, embedded hardware and firmware design for these systems or parts of these systems requires domain and system integration skills.

With a steady growth observed in the consumer electronics industry and IT hardware companies you might think of going into this sector to secure your future or are you still confused with what to choose? MyCareerGurukul is your one stop destination to explore all the career options you have and decide on the appropriate career choice for yourself. 

There will be expert counsellors and mentors to guide you throughout and explore your passion and skills. MyCareerGurukul is a one-of-a-kind platform that helps students discover the right career path at the right time, with the necessary coaching and mentorship to help them design their careers successfully. Its headquarters are at Vasai West, Mumbai North.

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