Electronics Industry in India
ELECTRONICS INDUSTRY IN INDIA
INTRODUCTION
Electronics is one of the fastest growing segments of the Indian industry. Today, the electronics industry is completely delicensed with the exception of aerospace and defence electronics.
The electronic industry in India constitutes less than 1% of the global market. The demand for these products however is growing rapidly and the investments are flowing in to augment the manufacturing capacity.
HISTORY
Among manufacturing industries, the electronics industry occupies a key position in modern science and technology. It plays a vital role in the fields of atomic energy, communications, defense, education, entertainment and space technology. Until the 1970’s the electronic industry was the most protected of all the Indian industries. The country’s electronics policy strongly favored self-reliance and technology and capital imports were strongly discouraged. This resulted in the electronics industry being highly underdeveloped till the late 1980’s. The industry was very inefficient producing outdated and low quality models at a very high cost.
Policy reforms were initiated in the early 1990’s with the liberalization of trade and industry sectors. With the change in the policy regimes after liberalization, the industry experienced restructuring.
THE INDIAN ELECTRONICS INDUSTRY
The Indian electronics industry today stands at US $ 25 billion. It is ranked 26th in the world in terms of sales and 29th in the world in terms of production. It is growing at over 25% CAGR and is expected to be worth US $ 158 billion by 2015. This industry is one of the fastest growing industries in the country and is driven by growth in key sectors such as IT, Consumer Electronics and Telecom.
The demand for electronics is expected to be fuelled by the growth of
• Telecommunications (250 million subscribers by 2007)
• PCs and Notebooks (5 million every year)
• Broad-Band connectivity reaching rural
INTRODUCTION
Electronics is one of the fastest growing segments of the Indian industry. Today, the electronics industry is completely delicensed with the exception of aerospace and defence electronics.
The electronic industry in India constitutes less than 1% of the global market. The demand for these products however is growing rapidly and the investments are flowing in to augment the manufacturing capacity.
HISTORY
Among manufacturing industries, the electronics industry occupies a key position in modern science and technology. It plays a vital role in the fields of atomic energy, communications, defense, education, entertainment and space technology. Until the 1970’s the electronic industry was the most protected of all the Indian industries. The country’s electronics policy strongly favored self-reliance and technology and capital imports were strongly discouraged. This resulted in the electronics industry being highly underdeveloped till the late 1980’s. The industry was very inefficient producing outdated and low quality models at a very high cost.
Policy reforms were initiated in the early 1990’s with the liberalization of trade and industry sectors. With the change in the policy regimes after liberalization, the industry experienced restructuring.
THE INDIAN ELECTRONICS INDUSTRY
The Indian electronics industry today stands at US $ 25 billion. It is ranked 26th in the world in terms of sales and 29th in the world in terms of production. It is growing at over 25% CAGR and is expected to be worth US $ 158 billion by 2015. This industry is one of the fastest growing industries in the country and is driven by growth in key sectors such as IT, Consumer Electronics and Telecom.
The demand for electronics is expected to be fuelled by the growth of
• Telecommunications (250 million subscribers by 2007)
• PCs and Notebooks (5 million every year)
• Broad-Band connectivity reaching rural