Driven by demand in sectors like EVs and consumer electronics, along with government incentives, ICICI Direct forecasts India’s electronic manufacturing will grow to $250 billion in five years looking at their stock market performance.
India’s electronic manufacturing is expected to double over the next five years, as per recent claims by ICICI Direct’s analysis. In line with the Centre’s ambition of reaching $100 billion in electronic exports, the report predicted an increase from $12 billion to $250 billion in this period.
It highlighted robust demand for Electronic Manufacturing Services (EMS) across various sectors, including electric vehicles (EVs), aerospace, railways, and consumer durables like air conditioners and washing machines, to drive this growth mainly. Along with that, the government’s push for local manufacturing with production-linked incentives and tax benefits is also resulting in substantial gains.
According to ICICI, the first quarter earnings season for the Indian stock market is nearly complete, with most significant companies having reported their results. It identified capital markets, consumer durables, electronic manufacturing services, and waste management as the top-performing sectors for the quarter.
In the consumer electronics sector, ICICI Direct observed strong performance driven by the hot summer, which boosted demand for air conditioners and led to impressive revenue growth. The sector’s margins improved due to lower input costs, a better product mix, and enhanced operational efficiency, fuelled by low market penetration, rising disposable incomes, and rapid urbanisation.
The analysis also stated that growing middle-class wealth and greater financial inclusion are shifting household savings towards investment products and financial markets, creating substantial growth opportunities.
