India's Electronics Sector Emerges As Fifth Largest Export Commodity


(MENAFN- KNN India) New Delhi, Aug 31 (KNN)
In a significant development for India's technology sector, Electronics has become the country's fifth largest export commodity, according to a senior official from the Ministry of Electronics and Information Technology (MeitY).

The sector has been experiencing robust growth, with exports increasing at an annual rate of 23 percent.

Bhuvnesh Kumar, Additional Secretary at MeitY, revealed that the electronics manufacturing industry in India surpassed the USD 100 billion market threshold in March 2024, more than doubling from USD 49 billion in 2017.

This announcement was made during the launch of indigenously-built Tyronne AMD servers by Netweb Technologies.

Kumar reported that electronics exports from India reached USD 30 billion in the previous year.

He expressed optimism about the future, stating that the country's net revenue from electronic exports is expected to turn positive in the coming years, particularly with the commencement of local semiconductor production.

The official also provided insights into India's digital economy, which is currently valued at one trillion dollars.

Of this, USD 400 billion is attributed to electronics manufacturing, while the remainder comes from IT-related sectors.

Breaking down the electronics manufacturing segment, Kumar noted that mobile phones contribute 43 percent, consumer electronics 12 percent, automotive 8 percent, strategic sectors 5 percent, and IT hardware 4 percent.

Kumar predicted significant growth in IT hardware manufacturing, suggesting it could soon outpace other segments within the electronics sector.

To further boost the industry, the government plans to introduce a second version of the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) under the production-linked incentive scheme.

(KNN Bureau)

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