Electronics and IT hardware industry is the world’s biggest and fastest growing manufacturing industry.  According to a nationwide survey, it has been found that the demand of approximately two-thirds of the domestic electronic components is met through imports, the bulk of which are from the South-East Asian countries. India presently imports to come up a majority of its demand (approx. 65 percent) for the electronic goods, and even the balance 35 percent of the electronic goods which is manufactured in India is mainly the “low value added manufacturing”, according to a set of study reports.

The Indian Electronics and IT hardware market is mainly categorised into seven categories namely: Consumer Electronics, Instrumentation and Industrial Electronics, Controls, IT hardware, Communication and Broadcast equipment, Electronic components and strategic equipment.

India is one of the largest growing electronic markets in the world. The import data of Electronic goods shows that the imports of electronic goods are exceeded those of gold and silver in the past few years. The Imports of electronics for the financial year 2016 have also risen to $40 billion from about $28 billion in the year 2012. The imports of electronic goods grew from $2.85billion in May 2016 to $4.38 billion in September 2016, which is led by a sharp rise in the purchase of personal computers, integrated chips, and smartphones.  As per the current import data of electronic component, the imports are contracted 2.2% to $3.2 billion in January 2017 for the first time since April 2014.  Now, the country is glaring at an import nightmare of an unparalleled escalation in the proportion of electronic goods that can thrust the country into a spiral of high imports.  However, the overall local production of electronic goods in India is not self-sufficient to meet the overall demand. Currently, the demand for electronics is largely being met through the imports, and there is a broadening demand-supply gap. Hence, the Government of India is focusing on establishing a robust ecosystem to boost local manufacturing.

Summary:- The change in dynamics in the production of electronic goods holds more significance as India imports sixty-five percent of its current demand for the electronic equipment. Electronic goods are now the second most valued category of imports after the petroleum products. The demand for electronics equipment in India is composed for significant growth in the next few years, determined by a strong economic outlook. Henceforth, there has to be an augmented drive from the industry partners and the Government on strengthening electronics manufacturing ecosystem to accomplish the aim of zero dependencies on imports for electronics demand.