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 total electronics demand in India, 50% of 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.
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).