Electronics & Electrical Industry in India

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Statistics, news & updates: everything you need to know about the Electronics & Electrical  Industry in India


  • Summary
  • COVID-19 Impact
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats


In the event that with 100% FDI in electronics and IT hardware production and Electronic Systems Design & Manufacturing, the Indian Government clearly wants to accelerate the Electronics and Electrical Industry. Moreover, as India has a large pool of Engineers, many companies have already shifted their production to India or source labour from India. As a consequence, the Indian Government is currently supporting skill development in Electronics System Design & Manufacturing.

With this in mind, a scheme under which 1,86,000+ candidates have already been trained. That being the case, the Government also wants to create new manufacturing hubs with special incentives for producers. Nevertheless, the electronic market will increase with a CAGR of 41.4% from $ 100 Billion in 2016 to $ 400 Billion in 2020. Subsequently, the Government’s ‘Make in India’ and ‘Digital India’ programs surge opportunities for foreign companies looking to invest in India. Besides these, schemes like M-SIPS (Modified Special Incentive Package Scheme) and EDF (Electronic Development Fund) also attract foreign investors.

Covid Impact

The electronics industry in India has suffered challenges on both supply and demand-side because of the pandemic. It is estimated that sales have declined to 6-7% in 2019-20.

Of the , 50% of total electronic demands in India it is fulfilled by imports whereas of the total electronic production in India around 16% is exported. In FY20, imports of electronics goods accounted for US$ 50 billion, wherein China and Hong Kong accounted for ~US$ 28 billion, or ~57% of India’s total electronic imports. China is a major supplier both for the final product as well as the raw material used in the electronics industry. India’s electronics industry is fearing supply disruptions, production reduction, impact on product prices due to heavy dependence on electronics component supply-directly and indirectly-and local manufacturing. The spread of coronavirus has pushed down the sales of top electronic companies and smartphone makers which have major supplies to India. The statistics below are taken from Industry data available pre-Corona virus impact.

Between April 2020 and December 2020, exports of electronic goods stood at US$ 8.77 billion. Despite the pandemic, the government aims to bolster Make in India and reduce its dependency on imports can be seen from its allocation of Rs. 2,631.32 crore (US$ 361.50 million) to promote electronics and IT hardware manufacturing programs (Modified Special Incentive Package Scheme (M-SIPS), Electronics Development Fund (EDF), and Manufacturing Clusters). 

Market Stats

  • As a matter of fact, India is one of the largest electronics markets in the world. It is further anticipated to reach $ 400 billion by 2025.
  • Furthermore, the Consumer Electronics and Appliances Industry in India is expected to become the fifth largest in the world by 2025.
  • India is expected to become a $ 28.3 billion consumer electronics industry by 2020.
  • Alternatively, the electronic market projected to grow at a CAGR of 17% in 2014-2020.
  • Accordingly, demand for electronic products and systems is expected to rise to $ 400 billion by 2020
    India’s electronics imports touched a record $ 55.6 billion in FY19.
  • On the other hand, 100% Foreign Direct Investment (FDI) is allowed under the Automatic Route in the ESDM industry.
  • Additionally, the gaming market in India to reach $ 801 million by 2022.

Map – Industry Clusters

Growth Drivers

  • India has the 3rdlargest pool of scientists and technicians worldwide.
    India is home to considerable talent for electronic chip design and embedded software.
  • National Policy on Electronics 2019 (NPE 2019), proposed by the Ministry of Electronics and Information Technology (MeitY) envisage placing India as a global hub for Electronics System Design and Manufacturing (ESDM).
  • Additionally, there is increased governmental spending in the sector.
    Also, there is raising incomes and credit availability.
  • Moreover, the Electronics sector in India has lower manufacturing costs compared to other markets.
  • Hence, all IT/Electronic products can be freely imported with the exemption of a few defense related items

Key Players in India


  • Nokia
  • LG
  • Samsung,
  • Microsoft
  • Texas
  • Instruments
  • Flextronics
  • Siemens
  • Schneider
  • Electrical
  • Bosch
  • Kelvin Electrical
  • Jabil Circuits


  • Bharat Electronics
  • Crompton Greaves
  • Bajaj Electricals
  • Wipro Lighting
  • Videocon
  • Sterlite Technologies
  • Centum Electronics

Sub Industries 

  • Cable & Optical fibre
  • Control Equipment and components
  • Electrical Equipment & Components
  • Electronic Components Semiconductors & PCBs
  • Electronic Equipment & Measurement Instruments
  • Hardware, Storage & Peripherals
  • Lighting products
  • Motors, Generators & Transformers
  • Telecommunication equipment & components
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