According to a report- Country’s electronic products industry is expected to reach $ 75 billion by 2017 from $ 61.8 billion with a rise in penetration across all consumer products, especially in semi-urban and rural markets.
Assocham and EY India noted under a study that the government’s push for infrastructure development, locomotive and energy have a significant opportunity for swift enlargement of the domestic electronics industry.
This market is dominated by electromechanical components such as PCB and connectors, which form 30% of the total demand, followed by passive components like: resistors and capacitors.
India’s attractiveness for manufacturers is growing day by day manifolds due to the availability of low-cost labor in the country. Rising manufacturing costs in China and Taiwan are compelling manufacturers to shift their manufacturing base to alternate markets.
It is said that the Indian manufacturing ecosystem for electronics and hardware industry is still at a nascent stage and faces various demand side as well as supply side challenges.
Component demand in India is muted due to very limited value addition as primarily last-mile assembly takes place. Norms such as safety regulations for automotive, medical and industrial sectors have driven the uptake of electronic content globally.
However, manufacturers in India do not add high electronic content in the products due to limited industry-specific standards. The current market is dominated by secondary sales and primary sales are limited due to reduced disposable income in semi-urban and rural markets.
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From ITvoir News Desk