Compound Annual Growth Rate and Visit Www .Ibef . Org Essay

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Electronics

NOVEMBER

2011

For updated information, please visit www.ibef.org

1

Electronics

NOVEMBER

2011

Contents
 Advantage India
 Market overview and trends
 Growth drivers
 Success stories: BEL, Videocon
 Opportunities
 Useful information

For updated information, please visit www.ibef.org

2

Electronics

NOVEMBER

2011

Advantage India
Growing demand


Growth in electronics will accelerate as government and corporate spending increases



Higher disposable incomes and adoption of plastic credit could boost the demand for consumer electronic goods

Opportunities

Advantage
India

Market sizeUSD45 billion

Increasing penetration into a consumer base, which itself is expanding at a CAGR of 22 percent •

intended reduction in government’s import bill likely to boost domestic electronics manufacturers Market sizeUSD400 billion Policy support

Higher investments

2009



2020E



Sector has attracted strong investments in the form of M&As and other FDI inflows



100 per cent FDI allowed in the electronics hardware manufacturing sector under the automatic route



Companies to augment investments in production, distribution and R&D in the next few years



Duty relaxation and schemes such as
EPCG, EHTP and SEZs to provide tax sops Source: Corporate Catalyst India, 2020E - estimate for calendar year 2020 by Department of Information Technology
Notes: FDI – Foreign direct investment, FY- Indian financial year (April – May), USD- US Dollar, EPCG- Export Promotion Capital Goods
Scheme, EHTP- Electronic Hardware Technology Park, SEZ – Special Economic Zone

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ADVANTAGE INDIA

3

Electronics

NOVEMBER

2011

Contents
 Advantage India
 Market overview and trends
 Growth drivers
 Success stories: BEL, Videocon
 Opportunities
 Useful information

For updated information, please visit www.ibef.org

4

Electronics

NOVEMBER

2011

The Indian electronics sector is split into six product segments
Electronics

Consumer
Electronics

Industrial
Electronics

Computers

Communication and Broadcasting
Equipment

Strategic
Electronics

Electronic
Components

Mobile Phones

UPS systems

Notebooks

Direct-to-home
(DTH)

Radars

Semiconductor devices TVs

SCADA

Desktops

Set Top Box
(STB)

Satellite based communication Cathode ray tubes Music Systems

PLC

Servers

Internal Security
System

Capacitors

Disaster
Management
System

Picture Tubes

AC drive systems Source: Department of Information Technology, 2010-11 annual report, Corporate Catalyst India
Notes: SCADA- Supervisory Control and Data Acquisition,
PLC- Programmable Logic Controller

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MARKET OVERVIEW AND TRENDS

5

Electronics

NOVEMBER

2011

Evolution of the Indian electronics sector Late 2000s
1991- 2005
Growth era
Liberalisation
era

1984-1990
Golden
period
1965 to early
1980s

Introductory stage • Closed market
• Development in transistor radios, black and white
TVs, calculators etc

• Continuous and rapid industry growth
• Developments in colour
TVs
• Advent of computers and telephone exchanges in
1985, followed by digital exchanges in 1988

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• Sharp decline in custom tariffs • Signing of WTO-FTA agreement in 1997, wherein India committed to complete elimination of all custom duties on IT

• Indian companies such as Videocon, Moser Baer and Onida gaining global identity
• Increasing penetration of high-end products such as air conditioners and High Definition TVs
(HDTVs) in consumer durables Source: Corporate Catalyst India

MARKET OVERVIEW AND TRENDS

6

Electronics

NOVEMBER

2011

Electronics production in India growing rapidly … (1/2)





Electronics production in India was valued at USD25.4 billion in FY11
Production expanded at a CAGR of 16.6 per cent since
FY06

Electronics production profile
30
USD billion

25.4

25

23.1
20.3

20

15

17.6
13.8
11.8

10
5
0
FY06

FY07

FY08

FY09…