With talks about government pushing the local Indian electronics manufacturers to produce electronics locally, there could be some dip in the overall scenario. According to a report, India’s electronic products manufacturing sector could shrink by as much as 6.7 per cent in revenue by 2015 with the increase in consumption being more than offset by imports, according to a report, indicating that government efforts aimed at boosting the domestic industry may not succeed.
This was revealed in the joint report released by the India Semiconductor Association (ISA) in association with researcher Frost and Sullivan. The study reads that local manufacturers could lose out on nearly $200 billion (around Rs.11 trillion today) of potential revenue in the 2011-2015 period. The report includes data about the semiconductor design, electronic components and electronic manufacturing services, besides the consumer electronics products.
The study further indicated that, “The overall electronics products industry, including imports, will grow by a compounded annual growth rate (CAGR) of 10 per cent to $94.2 billion by 2015 from $64.6 billion in 2011. Out of this, imports are expected to rise 50 per cent to $42 billion by 2015. Currently, almost 65 per cent of the demand is met through imports.”
Although India’s total semiconductor consumption is expected to grow by more than 50 per cent in 2011-2015 to $9.66 billion, it will be heavily reliant on imports from other global chipmakers. At present, the semiconductor market in India is at a very low key.
