Electronics Industry

Indian appliance and consumer electronics (ACE) market reached Rs. 76,400 crore (US$ 10.93 billion) in 2019. The appliances and consumer electronics industry is expected to double to reach Rs. 1.48 lakh crore (US$ 21.18 billion) by 2025.

Electronics manufacturing is expected to increase at an annual rate of 30% between 2020-25 and clock Rs. 11.5 lakh crore (US$ 163.14 billion) additional production during this period. Demand for electronics hardware in India is expected to reach US$ 400 billion by FY24. The National Policy (DNP) targets the production of one billion mobile handsets by 2025.

The television industry in India reached an estimated Rs. 787 billion (US$ 11.26 billion) in 2019 and is projected to reach Rs. 955 billion (US$ 13.66 billion) by 2021. Shipment of TVs in India increased 15% annually to reach the highest-ever level of 15 million units in 2019. In October 2020, television manufacturers such as Samsung, LG and Sony have been granted licences by the government to import finished TV sets into India. As of FY20, electronics, domestic appliances and the air conditioner markets in India were estimated to be around Rs. 5,976 crore (US$ 0.86 billion), Rs. 17,873 crore (US$ 1.80 billion) and Rs. 12,568 crore (US$ 2.56 billion), respectively. The DTH industry is expected to witness a growth of up to 6% to Rs. 22,000 crore (US$ 2.9 billion) in FY21 while the total count of DTH subscribers in the country grew to ~ 70.26 million in 2020 from 69.98 million in 2019.

There is a lot of scope for growth from the rural market with consumption expected to grow in these areas as penetration of brands increases. Demand for durables like refrigerators and consumer electronic goods is likely to witness an increased demand in the coming years, especially in the rural areas as the Government plans to invest significantly in rural electrification.

The white goods industry in India is highly concentrated. In washing machines and refrigerators, the top five players have more than 75% of the market share, while in air conditioners and fans, it is around 55-60%. On the other hand, the kitchen appliances segment is fragmented with the top five players having a 30-35% market share. For the issuance of electronic Certificates of Origin (CoO), the Government launched the Common Digital Platform, a single access point for all the exporters and all the Free Trade Agreements (FTAs) for all agencies concerned.