India has great opportunity is to create our own Electrical & electronics product industry

The Indian Electronics industry is being driven by macro factors such as the growing middle-class population and rising disposable income. In addition, declining electronics prices and adoption of high-end technology devices is leading to an uptick in consumption of electronics devices.

Furthermore, technology transitions such as the rollout of 4G/ LTE networks and IoT are driving the accelerated adoption of electronics products. Initiatives such as ‘Digital India’ and ‘Smart City’ projects have raised the demand for IoT in the market. Similarly, the digital banking sector like wallet players and payment banks will raise demand for POS and VSAT-enabled mobile ATMs, which will further give a fillip to the growing industry.

●  One of the largest electronics markets in the world anticipated reaching $ 400 bn by 2025

●  The Consumer Electronics and Appliances Industry in India is expected to become the fifth-largest in the world by 2025.

●  India’s share in global electronics manufacturing has grown from 1.3% in 2012 to 3.0% in 2018

●  The electronics manufacturing sector accounts for 2.5% of India’s GDP, and employs over 13 million people through directly and indirect jobs. A growing middle-class population, rising disposable income, and declining electronics prices have led to an uptick in consumption of electronics devices in India. Quick technology transitions such as the rollout of 5G and Internet of Things (IoT) are ushering a new era for electronic products. India is undoubtedly undergoing a digital revolution. The country has experienced large-scale digital adoption between 2013 and 2018.

●  Digital transactions have increased 10x in the past 5 years.

By 2025, India could create a digital economy of $800 billion to $1 trillion, and India’s digital economy could fuel 18–23% of overall economic activity by 2025. 100% FDI is allowed under the automatic route. Electronics market in India is around US$228 bn projected for 2020 ​which is further segmented as follows:

●  Mobile devices (27%)

●  Consumer electronics (18%)

●  Industrial Electronics (15%)

●  IT/Office automation (10%)

●  Automotive electronics (8%)

●  Telecom (8%)

●  Strategic (Aerospace and Defense) (7%)

●  Medical devices (4%)

Others (3%) Industrial Electronics & IT/Office Automation will be covered under the process automation which was $119.29 billion in 2018​, Also, the process instrumentation market was ​$31.71 billion in 2018, VFD/Inverters, Relays, PLCs, SCADA, UPS and storage devices are some of the main components of Process Automation. The complete ecosystem spanning several key manufacturers of the parts, distributors has been analyzed to give an in-depth understanding of the market landscape. Process Automation and Process Instrumentation sectors being the key opportunity markets of the electronic components (for factory automation) are witnessing robust growth rates across all industry verticals. The integration of electrical products with industrial machinery has unfolded wider applications in the field of discrete and process manufacturing. The market of electronic components for factory automation is set to drive proportionally with the attractiveness of the latter opportunity markets.

Industrial Automation adaption is more important to make manufacturing more effective

Recent developments in factory optimization have forced the need to adapt machinery and other processes to make manufacturing more effective. The Industrial Automation sector is opening up many opportunities for technology companies that are innovative and can cater to automotive or agricultural companies. Further, factors like innovations in IT, emerging middle class and augmented disposable income help the industry grow in India. Demand is further expected to increase in the coming years as companies need more Automation to remain competitive. Moreover, Industrial Automation is becoming an important part of companies producing in India that apply the latest technologies.

Besides, India is moving towards Industry 4.0. Hence, the Industrial Internet of Things (IIoT) will emerge as a game-changer for the manufacturing Industry. Known for its large number of engineering graduates and professionals, India provides a great pool of skilled labour for the Industrial Automation sector. This industry has a great present and future prospect. Companies interested in entering India will find good business opportunities in this sector.

Market Statistics:

●  The global Industrial Automation Market size was valued at USD 157.04 Billion in 2018. It is expected to reach USD 296.70 Billion by 2026.

●  The Indian Industrial Automation Market size was valued at USD 5 Billion in 2018. It is further expected to grow at a CAGR of 12% by 2023.

●  Indian Industrial Automation Market is expected to reach $4.43 billion by 2023.

●  The Indian Industrial Automation Market is expected to grow at a CAGR of 11.6% during 2017-2023.

●  The country is expected to strengthen its manufacturing sector. It is expected to reach 25% to 30% of the GDP by FY 2030.

●  India ranks third worldwide in implementing robotic automation. As of 2018, there are overall 74 robot units per 10,000 employees globally.

Growth Drivers:

●  The Industrial Automation Industry in India is still evolving. This is due to increasing Foreign Direct Investments (FDI) and sustained growth of the manufacturing sector.

●  Factory Automation becomes more and more important for competitiveness of companies.

●  India emerges as a preferred sourcing destination for Industrial Automation.

●  India’s growing manufacturing sector scales up industrial automation equipment demand.


The Indian Electronic industry constitutes less than 1% of the global market. However, demand for these products is growing rapidly and investments are flowing in to augment manufacturing capacity. Today India remains a major importer of electronic materials, components and finished equipment. The country imports electronic goods mainly from China. Strategies to be adopted: To convert emerging opportunities in the electronics industry over next one decade, there is a need to urgently: Strategies to be adopted: Enhance competitiveness The Indian electronics industry should be so equipped that it competently meets any competition in the domestic as well as export markets. For this, some strategic initiatives that may be needed include: · Upgrade technology levels to bring it at par with global benchmarks; · Develop manpower skills to support industry‘s future requirements; · Secure supplies of critical input materials;
· Enhance customer centricity; · Introduce policy changes to provide a level-playing field to Indian electronics manufacturers; · Develop and strengthen support infrastructure.

Increase market share in export markets

India currently accounts for less than 1% of global trade in electronics exports. With the demand from developed countries stagnating and that from developing nations seeing significant increase, there exists substantial potential for India to tap the export markets. To increase the share of exports, specific actions need to be taken by the Indian government and electronics manufacturers, such as:

· Identify target markets and develop country-specific export strategies; · Introduce policy changes to support electronics exporters;

· Use the support of Indian diplomatic offices and electronics industry association like ELCINA, CEAMA, MAIT, IEEMA, etc. to promote electronics exports and Brand India.


India has been a great success story in the IT services industry and the next great opportunity is to create our own electronics product industry, which will help to move up the value chain and create global technology brands. Today the market is at the threshold of a decisive phase in our growth where, if the government and entrepreneurs take concrete steps it can create a $100 billion electronics product industry from India in the next 10 years. The mantra of the industry today is convergence – whether of technologies or products or markets. Digitalization, miniaturization and mobility are driving this change. Further, intense competition is leading to commoditization of the industry, pressurizing margins. Against the backdrop of the global recession, cost competitiveness, technological innovations and emerging markets are the key drivers of the industry’s transformational growth. Indian electronics industry has to use strategic planning to move ahead and capture a larger share in the global market.