With more local value additions, electronics manufacturing sector to be worth $115 bn in 2024
electronics manufacturing sector is set to grow 15 per cent to be worth USD 115 billion in 2024, with players continuing to focus more on higher levels of value addition in terms of components and development of products. The production of mobile phones, the poster boy of the country's electronics manufacturing, is expected to surpass USD 50 billion by March 2024 from around USD 42 billion in the previous financial year.
Google's Pixel smartphone production in India from the first quarter of 2024 will complete the manufacturing presence of all global majors in the country.
India Cellular and Electronics Association (ICEA) Chairman Pankaj Mohindroo said the total production of electronic goods in the financial year 2023-24 is estimated to reach USD 115 billion, buoyed by an exceptional contribution of mobile phones, which is estimated to exceed USD 50 billion in the current fiscal.
According to data shared by the government, domestic electronics manufacturing increased over four-fold to Rs 8.22 lakh crore or USD 102 billion in the last 10 years from Rs 1,80,454 crore (USD 29.8 billion) in FY14.
Mohindroo said the mobile phone exports are expected at USD 15 billion in FY24, posting a 35 per cent growth over the last fiscal.
ICEA estimates that mobile phone exports have surpassed USD 9 billion during the April-November period of this fiscal compared to USD 6.2 billion during the same period last year.
While indigenous electronics manufacturing has been growing in terms of value and volume, former RBI Chairman Raghuram Rajan triggered a debate by questioning the level of value addition taking place in the country.
Rajan's remark attracted criticism from Union ministers Ashwini Vaishnaw and Rajeev Chandrasekhar.
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