India’s electronic market size will grow into $160.5 billion by 2020, according to government estimates. The market mainly comprises telecom equipment, laptops, desktops, and tablets.
Growing at 9.88 percent annually since 2011, the market is expected to reach the size of $160.5 billion by 2020. The product segments are varied and vast.
The ESDM (electronic system design and manufacturing) sector comprises the following segments
- Electronic products
- Electronic components
- Semiconductor design
- Electronics manufacturing services
The top 10 electronic products by revenue are.
- Mobile phones
- Flat panel display TVs
- Digital cameras
- Inverters/ UPS
- Memory cards/USB drives,
- EMS/LCD monitors
- Telecom Equipment– 34 Billion
- Laptops, Desktops, Tablets– 34 Billion
- LED – 35 Billion
- Consumer Electronics – 29 Billion
- Set Top Boxes – 10 Billion
- Automotive Electronics – 10 Billion
- Medical Electronics – 8.5 Billion
The market is benefiting from government’s Make in India program and is drawing more investment, innovation, intellectual property protection and I developing best-in-class manufacturing infrastructure.Apple To Make iPhones In India
Meanwhile, Apple is getting ready to make iPhones for the Indian market in Bangalore, according to reports.
“Wistron, a Taiwanese OEM maker for Apple, is setting up a facility in Peenya, the city's industrial hub, to manufacture the iPhones. The facility will start production from next April,” media reports said.Meanwhile, a group of ministries is studying the pitches on the incentives by the iPhone maker for setting up the manufacturing unit in the country.
Senior officers from the department of commerce, industrial policy, and promotion, revenue, environment, electronics and information technology are working on it. Apple has asked for several tax incentives to enter the Indian manufacturing sector.
The government benefits come under Modified Special Incentive Package Scheme (MSIPS) for boosting electronic manufacturing in the country. It provides financial incentives to offset disability and attract investments in the electronics hardware segment. A subsidy is also offered for investments in Special Economic Zones as other benefits.
Currently, Apple has manufacturing centers in six countries, including Korea, Japan, and the US. Earlier, the Indian Finance ministry rejected diluting the 30 percent domestic sourcing norms demanded by the iPhone for setting up single-brand retail stores in the country. The government also struck down the firm's proposal to import refurbished phones to sell in the Indian market.
Apple has been selling its products through distributors such as Redington and Ingram Micro.