Role of Electronics and Hardware Industry in Indian Economy
The Role of Electronics and Hardware Industry in India GDP is to ensure the growth of the other industries and contribute to the growth of the Indian economy. The Electronics and Hardware Industry depends on the manufacturing of the semiconductors.
The favorable conditions in India, friendly Government policies have made India one of the leaders in electronics and hardware.With the increasing consumption of electronic items in the country, the hardware manufacturing industry in India is poised to touch $155 billion by 2015.
“As per study made by Frost and Sullivan, the (global) market for electronics hardware is expected to grow by 30 per cent to $320 billion in 2015,” Department of Information Technology Secretary Jainder Singh said at the Componex Nepcon exhibition here today.
“There is a potential for the domestic hardware manufacturing to grow to $155 billion in 2015”. Indian electronic hardware production increased from Rs 43,800 crore in 2003-04 to Rs 80,800 crore in 2007-08, with a cumulative annual growth rate of 16.6 per cent.
Increased consumption of mobile phones, computers and televisions is driving the domestic demand for the industry in India.
“While the sales of PCs have reached 7.3 million units a year, about 8-10 million mobile phones are sold. The market for colour televisions has also increased to about 15 million units a year,” he said.Singh noted that with the relaxation in import policies and progressive reduction in duties, import of manufactured components has increased, which has in turn suppressed the domestic demand.
Role of Electronics and Hardware Industry in India GDP-Importance
Role of Electronics and Hardware Industry in India GDP is crucial for the development of the IT and the ITES sector in India. Electronics and hardware are the major components of several industrial sectors such as Information Technology sector, Telecommunication sector, Automobiles sector, Electronic appliances sector, Special Medical equipments sector, etc.
India-Hub of Electronics and Hardware Manufacturing
- India has become one of the favored destinations pertaining to the electronics and hardware
- The growth of the Electronics and Hardware Industry in India due to the favorable conditions for the electronics industry
- The Government policies are also helping the growth of the electronics and hardware industry
- The Policies pertaining to investments are attracting foreign players in this industry
- The manufacturing of the semiconductor is the most important area pertaining to the electronics and hardware industry
- The semiconductors are used in all kinds of electronic equipments such as cell phone, personal computers, laptops, other implementations in automobile sector, medical equipments, etc
- India Semiconductor Association (ISA) is the apex agency pertaining to the semiconductor companies and chip design firms in India
Advantages of Indian Electronics and Hardware Industry
- Multi national corporations can provide to the growing electronics market in India at lower costs by manufacturing semiconductors in India
- India has the potential to come up as the next electronics and hardware destination in the world
- The chip design and other complex components electronic device can be acquired from the Indian companies at low cost
- India is growing up to be one of the biggest markets for electronic instrumentations
- The consumption value of electronic equipment in India in 2005 is estimated as US$ 28.2 billion
- The main factor pertaining to the success of the Indian Electronics and Hardware Industry is the growth in the market demand
- The growth in the manufacturing of semiconductor is the key driver in the emergence of India as one of the leaders
- The advantages pertaining to the taxes and duties, the access to technical and engineering expertise, proper manufacturing facilities, lucrative investment offers, etc
Electronics and Hardware Industry in India GDP-Rising steps
- Role of Electronics and Hardware Industry in India GDP growth has been phenomenal
- India provides immense opportunities for electronic instrumentation manufacturing
- The projected production within the year 2015 would worth US$ 155 billion
- The development of the electronics and hardware consumers ensures the growth of the industry.
The electronics industry came in 1900s when the electron tube having two elements was invented by John Ambrose Flemming. till the 1950s the techniques developed were known as “radio techniques” as they were mainly used in the radio appliances It was the 1960s when the analog devices were invented that brought a revolution in the electronics industry In 1970s the consumer electronics were developed These years also saw the dominance of the United States of America coming to an end with many new economies showing their presence
IN INDIA The electronic industry in india took off around 1965 Its was followed by consumer electronics mainly with transistor radios, black & white TV, calculators and other audio products In 1982 in the history of television in india the government allowed thousand of colour TV sets to be imported into the country And now growing at a brisk pace It is currently US$ 32 billion Constitute 0.7 per cent of global electronic industry. Output of the electronic hardware industry in india is worth US$ 11.6 billion at present India is also an exporter of a vast range of electronic components and products for the following segments a) Display technologies b) Entertainment electronics c) Optical Storage devices d) Passive components e) Electromechanical components f) Telecom equipment
The export performance of electronic goods is expected to touch US $ 15 billion by 2013-14. In the year 2005 India’s electronic consumption was around 1.8 %. It is likely to touch 5.5 % in 2010. According to a study conducted by ISA and Frost Sullivan, India’s semi-conductor market would grow by 2.5 times. The share of electronics production in Indias GDP has been growing over the years 1.6% share in Indias GDP in 2001-02, it has increased to 1.95% in 2009-10.
The market for electronic products in India haswitnessed significant growth in recent years due toseveral factors, such as :-Manufacturing growth ICT penetration, growing disposable income retail boom and attractive finance schemes.
Challanges Heavy taxation:- total tax around 25-30% 65% of indian population still lives in villages increase in price wars due to the entry of new players in the market Poor distribution network in semi-urban and rural areas Low awareness of consumer electronics products in rural India Presence of gray market in consumer electronics products, especially in DVD player, music players. Companies need to increase focus on product differentiation to address various segmental specific needs. Market SizeThe electronic industry in India constitutes just 0.7 % of the global electronic industry .