INDIAN ELECTRONIC INDUSTRY
Size of the Industry
| Indian electronics industry today stands at US $ 25 billion
| Geographical distribution
| All the major Metropolitans cities in the India
| Output per annum
| It is growing at over 25% CAGR and is expected to be worth US $ 158 billion by 2015
Indian Electronics industry dates back to the early 1960's. Electronics was one industry initially restricted to the development and maintenance of fundamental communication systems including radio-broadcasting, telephonic and telegraphic communication, and augmentation of defence capabilities. Until 1984, the electronics Industry was primarily government owned and then in 1980s witnessed a rapid growth of the electronics industry due to sweeping economic changes, resulting in the liberalization and globalization of the economy. The economic transformation all over the world was motivated by two compelling factors - the determination to boost economic growth, and to accelerate the development of export-oriented industries, like the electronics industry. By 1991 in the country private investments - both foreign and domestic were encouraged. The easing of foreign investment norms, allowance of 100% foreign equity, reduction in custom tariffs, and relicensing of several consumer electronic products had attracted remarkable amount of foreign collaboration and investment. The domestic Electronic industry also responded favourably to the policies of the government. The initiatives of the electronics field to private sector enabled entrepreneurs to establish the industries to meet demand in the market. Improvements in the Indian Electronics industry have not been limited to a particular segment, but encompass all its sectors. This pace made in the areas of commercial software, telecommunications, electronics, instrumentation, positioning and networking systems, and defence. The result therefore has been a significant trade growth that began in the late 1990's. The Indian Electronics Industry is a text for investors who consider India as a potential investment opportunity.
Indian electronics companies had majorly benefited from the economic liberalization policies of the 1980's, including the loosening of restrictions on technology and component imports, delicensing, foreign investment, and reduction of excise duties. Output from electronics plants in India grew from Rs1.8 billion in FY 1970 to Rs8.1 billion in FY 1980 and to Rs123 billion in FY 1992. Most of the expansion took place in the production of computers and consumer electronics. Indian Production of Computer rose from 7,500 units in 1985 to 60,000 units in 1988 and to an estimated 200,000 units in 1992. During this period, major advances were made in the domestic computer industry that led to more sales. Consumer electronics in India account for about 30% of total electronics production of the country. In 1990 the electronic production included 5 million television sets, 6 million radios, 5 million tape recorders, 5 million electronic watches, and 140,000 video cassette recorders. The Indian engineering sector is large and varied and provided around 12 % of India's exports in the mid-1990s. Two subsectors, electronics and motor vehicles, are the most dynamic in all the sectors. Despite the global economic slowdown, growth of Indian electronics industry in 2009 was on par with the previous year at 9.9%, although this was decreased according to the double-digit growth achieved in 2006 and 2007. In 2010 output grown by 13.6% and in the medium to long-term India will continue to show strong growth driven by a large, fast growing domestic market, significant foreign investment and an improving regulatory environment. The global electrical and electronics industry has various adjunct sectors. Few of them are Electronic Components, Computer & Telecommunications, Office Equipments, Consumer Electronics as well as...
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