For updated information, please visit www.ibef.org
1
Electronics
NOVEMBER
2011
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: BEL, Videocon
Opportunities
Useful information
For updated information, please visit www.ibef.org
2
Electronics
NOVEMBER
2011
Advantage India
Growing demand
•
Growth in electronics will accelerate as government and corporate spending increases
•
Higher disposable incomes and adoption of plastic credit could boost the demand for consumer electronic goods
Opportunities
Advantage
India
Market sizeUSD45 billion
Increasing penetration into a consumer base, which itself is expanding at a CAGR of 22 percent •
intended reduction in government’s import bill likely to boost domestic electronics manufacturers Market sizeUSD400 billion Policy support
Higher investments
2009
•
2020E
•
Sector has attracted strong investments in the form of M&As and other FDI inflows
•
100 per cent FDI allowed in the electronics hardware manufacturing sector under the automatic route
•
Companies to augment investments in production, distribution and R&D in the next few years
•
Duty relaxation and schemes such as
EPCG, EHTP and SEZs to provide tax sops Source: Corporate Catalyst India, 2020E - estimate for calendar year 2020 by Department of Information Technology
Notes: FDI – Foreign direct investment, FY- Indian financial year (April – May), USD- US Dollar, EPCG- Export Promotion Capital Goods
Scheme, EHTP- Electronic Hardware Technology Park, SEZ – Special Economic Zone
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ADVANTAGE INDIA
3
Electronics
NOVEMBER
2011
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: BEL, Videocon
Opportunities
Useful information
For updated information, please visit www.ibef.org
4
Electronics
NOVEMBER
2011
The Indian electronics sector is split into six product segments
Electronics
Consumer
Electronics
Industrial
Electronics
Computers
Communication and Broadcasting
Equipment
Strategic
Electronics
Electronic
Components
Mobile Phones
UPS systems
Notebooks
Direct-to-home
(DTH)
Radars
Semiconductor devices TVs
SCADA
Desktops
Set Top Box
(STB)
Satellite based communication Cathode ray tubes Music Systems
PLC
Servers
Internal Security
System
Capacitors
Disaster
Management
System
Picture Tubes
AC drive systems Source: Department of Information Technology, 2010-11 annual report, Corporate Catalyst India
Notes: SCADA- Supervisory Control and Data Acquisition,
PLC- Programmable Logic Controller
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MARKET OVERVIEW AND TRENDS
5
Electronics
NOVEMBER
2011
Evolution of the Indian electronics sector Late 2000s
1991- 2005
Growth era
Liberalisation
era
1984-1990
Golden
period
1965 to early
1980s
Introductory stage • Closed market
• Development in transistor radios, black and white
TVs, calculators etc
• Continuous and rapid industry growth
• Developments in colour
TVs
• Advent of computers and telephone exchanges in
1985, followed by digital exchanges in 1988
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• Sharp decline in custom tariffs • Signing of WTO-FTA agreement in 1997, wherein India committed to complete elimination of all custom duties on IT
• Indian companies such as Videocon, Moser Baer and Onida gaining global identity
• Increasing penetration of high-end products such as air conditioners and High Definition TVs
(HDTVs) in consumer durables Source: Corporate Catalyst India
MARKET OVERVIEW AND TRENDS
6
Electronics
NOVEMBER
2011
Electronics production in India growing rapidly … (1/2)
→
→
Electronics production in India was valued at USD25.4 billion in FY11
Production expanded at a CAGR of 16.6 per cent since
FY06
