Electronics import by India will reach $300 billion in 3 years: Assocham-NEC...

    Electronics import by India will reach $300 billion in 3 years: Assocham-NEC study

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    electronics

    High demand for electronics could outpace domestic production, leading to an import requirement of about USD 300 billion by 2020, a report by Assocham-NEC said.

    The report pointed out that while demand for electronic products in India is expected to grow at a CAGR (compound annual growth rate) of 41 per cent to reach USD 400 billion by 2020, domestic production is growing at a CAGR of 27 per cent.

    This leaves a huge gap for import to the extent of USD 300 billion, the joint study said.

    With demonetization adding to the demand for Point of Sale (POS) devices and mobile phones, this demand is going to increase manifold, the study said.

    Investments in electronics manufacturing stood at about Rs 1,27,880 crore in 2016, buoyed by initiatives like Make in India and Digital India as well as schemes like Modified Special Incentive Package Scheme (M-SIPS) and Electronics Development Fund (EDF).

    Even though there are signs of promising growth, the local production of electronic products has to be increased significantly to meet the domestic demand, the study said.

    It suggested steps like increased emphasis on raising the percentage of local component manufacturing in India as well as simplifying complex regulatory structure for easier compliance for new entrants to help boost domestic production.

    Image source: qcostarica.com

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