India’s domestic consumer electronics market closes in on $100-bn valuation

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₹98,924 crore in FY23. China’s electronics conglomerate BBK Group, which operates five gadget brands in the country, maintained steady revenue at ₹81,870 crore in FY23 despite sales volumes falling significantly. Apple India clocked ₹49,321 crore in revenue in FY23.

The financials for FY24 are yet to be filed by any company. Each of these companies is expected to report a high-single digit revenue growth in FY24, while Apple India’s growth could be exponentially higher, driven by rising iPhone sales. However, not everyone is convinced about the $100-billion market size of India’s electronics industry.

Navkendar Singh, associate vice-president at market researcher IDC India, said that value-addition is not necessarily a sign of growth. “The growth in value could be to the benefit of retailers, but it’s important to note that value growth is not a sign of market growth—or increasing value generation from the domestic market for the Centre. More premium devices being sold in India is a sign of credit proliferation and buyer sentiment, but the fact remains that there are no net new customers joining the electronics market.

This gives the market a lopsided growth indicator—and doesn’t mean that India is actually becoming a market akin to China or the US," he said. Retailers, though, are excited about the growth trends. Kailash Lakhyani, founder and chairman of industry body All India Mobile Retailers Association and vice-chairman of Confederation of All-India Traders, said that after a year of low demand, retailers are finding their footing in higher-value sales.