Market size of key electronic products in India FY 2019-2026

In terms of consumption, India’s electronics market is one of the largest in the world. The production output of its electronics was almost five trillion Indian rupees in financial year 2021. In the early 2000s, the majority of demand for electronic products was met by imports. With the help of government incentives and foreign investments, India has seen fast development in its electronics production capacity.

Smartphone market

An increasing disposable income, cheaper internet, wide availability of entry level smartphones, and various other factors have led India to be one of the largest smartphone markets in the world. The influx of Chinese smartphone brands with comparatively cheaper prices has resulted in the fact that around 60 percent of the phones sold in India were made by Chinese companies. Consequently, established Indian smartphone manufacturers were only left with marginal share of the market.

Government incentives

The Indian government has introduced a series of policy schemes to promote the electronics manufacturing sector in India, which includes the Production Linked Incentive Scheme (PLI), Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), Modified Electronics Manufacturing Clusters Scheme (EMC 2.0), and the Production Linked Incentive Scheme (PLI) for IT Hardware. With great state support, the long-term potential for the electronics industry is optimistic, especially when combined with the relatively low penetration of many electronics products in the country and a generally positive economic outlook.