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The global electronics hardware sector is estimated to be worth around US$2 trillion, with India's production amounting to around US$47 billion in 2016-17. In the fiscal year 2016-17, India's domestic consumption was over $ 86.4 billion, while exports were over $6 billion.
In India, current value addition in the sector ranges from 5 to 30%, depending on the value chain's constituents. It is approximately 25-30% in components, whereas it is approximately 5-15% at the SKD assembly level.
In terms of its main parts, the electronics industry is divided into numerous verticals. Currently, there is a scarcity of production data in this sector.
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Consumer Electronics Overview

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As a result of the digitalization of the broadcast business and increasing affordability due to price reductions, the flat panel TV market has seen significant development in the last 5 years. The production of LCD/LED TVs has climbed to 16.0 million units valued at around Rs. 26,400 crore in 2017-18, up from 14.5 million units valued at around Rs. 23,925 crore in 2016-17, indicating a 10% rise.
Home Theater output is expected to increase by 0.76 million units, valued at FRs.924 crore in 2017-18, compared to 0.7 million units, valued at Fts. 840 crore in 2016-17.
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Exports Scenario
The government has taken several steps to boost the Electronics Hardware sector's exports. EHTP units and Special Economic Zones (SEZs) are the key contributors to exports. SEZs were established to promote hassle-free manufacturing and trading for export reasons.
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SEZ Units are eligible for a 100% income tax exemption on export profits for the first five years, 50% for the next five years, and 50% on ploughed back profits for the next five years. The Electronics Hardware Technology Park (EHTP) Scheme is an export-oriented program for electronic goods manufacturing.
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Under the Foreign Trade Policy, incentives under the Merchandise Exports from India Scheme (MEIS) are available for the export of electronic goods. Export Promotion Capital Goods (EPCG) Scheme, Duty Exemption and Remission Programmes, Duty-Free Import Authorization (DFIA) Scheme, Deemed Exports, and other schemes for export promotion are available. Exports have improved in 2017-18 compared to 2016-17 as a result of the effective measures taken.
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According to data from the Directorate General of Commercial Intelligence and Statistics (DGCI&S), electronic goods exports in 2016-17 totaled US $ 5962.9 million (Rs.39,979.6 crore), up from the US $ 5959.5 million (Rs.39,063.5 crore) in 2015-16.
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Electronics Industry Overview in India
In recent years, India has seen a significant increase in demand for electronic items, owing to India's position as the world's second-largest mobile phone manufacturer and the country's high internet penetration rate. Electronics hardware production is a significant priority for the Indian government, as it is one of the key pillars of the Make in India, Digital India, and Start-up India programs.
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· The field of Electronics System Design & Manufacturing (ESDM) is critical to the government's goal of generating $1 trillion in economic value from the digital economy by 2025.
· India has already begun to see beginning activity with increasing production and assembly operations across products such as mobile phones and other consumer electronics, thanks to several government efforts aimed at boosting domestic manufacturing.
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· The ESDM sector in India is expected to reach US$ 220 billion by 2025, growing at a 16.1 percent CAGR between 2019 and 2025, thanks to strong legislative backing, massive investments by public and private stakeholders, and a surge in demand for electronic products.
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