Duty exemption schemes enable duty free import of inputs required for export production. Duty Exemption Schemes consist of (a) Advance Authorisation scheme and (b) Duty Free Import Authorisation (DFIA) scheme. A Duty Remission Scheme enables post export replenishment / remission of duty on inputs used in export product. Duty Remission Schemes consist of (a) Duty Entitlement Passbook (DEPB) Scheme and (b) Duty Drawback (DBK) Scheme.
The Indian electronics industry is being driven by macro factors such as growing middle class population & rising disposable income. In addition, declining electronics prices & adoption of high-end technology devices is leading to an uptick in consumption of electronics devices. Furthermore, technology transitions such as roll out of 4G/LTE networks and IoT are driving accelerated adoption of electronics products. Initiatives such as Digital India and Smart City projects have raised the demand for IoT in the market. Similarly, the digital banking sector like wallet players, payment banks will raise demand POS, VSAT-enabled mobile ATMs, which will give a fillip to the growing industry.
- One of the largest electronics markets in the world, anticipated reaching USD 400 bn in 2025
- The electronics market is projected to grow at a CAGR of 17% during 2014-2020
- The government has envisioned a target of “Net Zero Imports” by 2020
100% FDI is allowed under the automatic route
In case of electronics items for defence, FDI up to 49% is allowed under automatic route, whereas anything above 49% is allowed through the government approval.
for more details refer FDI Policy 2017
- India's gaming market to reach USD 801 mn by 2022
- Indian IoT market to reach USD 9 bn by 2020
- Fastest growing smart phone market in Asia Pacific
The Indian electronics and hardware market grew by 8.6% YoY to reach USD 75 bn in 2015.
Nearly 70-80% of the electronic components market is imports dependent. The electronics products segment contributed 82% to the overall market in 2015, and the rest comprised electronic components.
The electronic products industry in India was valued at USD 61.8 bn in 2015 which is further segmented as follows:
- Mobile devices (27%), Consumer Electronics (18%), Industrial Electronics (15%), IT/Office automation (10%), Automotive Electronics (8%), Telecom (8%), Strategic (Aerospace and defence) (7%), Medical devices (4%) and Others (3%)
The electronic component industry was valued at USD 13.5 bn of which electro-mechanical segment had the highest share at 30%. Passive and active segments handled 27% and 22% share respectively. Remaining market of 20% was handled by the Others segment.
- Sector growth rate (p.a.)
- Mobile manufacturing growth rate (p.a.)
- Domestic manufacturing growth rate (p.a.)
- Hardware market growth (y.o.y.)
FDI inflows (in USD) in April 2000 - September 2017
FDI equity inflows growth in 2014-16 viz-a-viz 2012-14
FDI allowed in electronics sector
March 2018 - Tata Communications will invest USD 97.5 mn in developing IoT business.
March 2018 - Kyocera CTC Precision Tools Private Limited (KCPT) will invest USD 37.51 mn – USD 40.0 mn to increase production by 3 times within next 3 years
March 2018 - Micromax will invest USD 30.0 mn to further diversify into consumer electronics segment
February 2018 - TUV will invest USD 48.0 mn in developing facilities for future technologies in the wireless space
February 2018 - Cummins India will invest around USD 500 mn to develop electric powertrain manufacturing
February 2018 - The Telangana Government and Nasscom will jointly invest USD 6 mn to set up Center of Excellence for data science and artificial intelligence