Furthermore, the Indian electronics industry heavily relies on imports from China. That being the case, it sources a wide range of electronics raw materials, components, and related goods from China. In fact, India sources around 75% to 85% of the value of electronic components used in smartphones and televisions from China. Moreover, if we go by the statistics, the electronic goods imported from China to India stood at Rs. 1,48,555 crore in 2015-16. Hence, this accounts for around 55% of India’s total hardware imports. Though, the figure saw a rise of Rs. 2,06,086 crore in 2017-18. Whereas, in 2018-19, the total electronic goods imported from China to India were Rs 1,59,165 crore.
As a consequence of the coronavirus pandemic, most of the manufacturing units in China are either closed or working with reduced capacities. Not only this but several Chinese component makers have hiked prices by 2-3% owing to supply shortages. Conversely, the prices could further go up if the situation does not come under control. However, there is a positive outlook with the hope that the effects of the pandemic would ease in the coming time and the manufacturing units in China would ramp up their production. Hence. this would mean, an overall positive picture for the Indian electronics industry as well.