India’s electronic goods exports touch $1.67 billion in December 2021
During April-December 2021, the exports of electronics goods registered a growth of 49% to USD 11 billion
The Ministry of Commerce & Industry has announced that the country's exports of electronic goods touched $1.67 Billion last month, registering a growth of 33.99% over $1.25 billion logged in December 2020.
So far in FY22, April - December 2021, the sector's exports registered a growth of 49% to $11.0 billion (Provisional) over $7.4 Billion during the same period in the year 2020.
As compared to April-December 2019 ($8.8 billion) and April-December 2014 ($4.8 Billion), exports of electronic goods registered a growth of 26% and 131% respectively, the ministry said on Thursday.
The electronic goods sector includes IT hardware (laptops, tablets), consumer electronics (TV and audio), industrial electronics, auto electronics, electronic components, LED lighting, wearables and hearables, and Telecom equipment among others. Notably, mobile phones constitute a major chunk of India's electronics goods exports.
According to the Ministry of Commerce & Industry, the top 5 export destinations in April-November 2021 were: US (18%), UAE (16.6%), China (7.6%), Netherland (4.5%) & Germany (4.2%).
The overall exports of Electronics Goods in the last Financial Year (March, 2020-April, 2021) was $11.11 Billion, and with $11.0 Billion exports achieved in the first three quarters of FY2021-22, the sector is set to break all-time record highs, far exceeding the previous high of $11.7 billion recorded in FY2019-20.
Steps taken by the Government which are expected to increase the domestic manufacturing and export of Electronics Goods including mobile phones include:
* Formulation of Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing.
* PLI for IT hardware, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS).
* Modified Electronics Manufacturing Clusters (EMC 2.0) under the National Policy on Electronics, 2019, which envisages to position India as a global hub for Electronics, System Design and Manufacturing (ESDM).
Moreover, FDI upto 100% under the automatic route is permitted for electronics manufacturing subject to applicable laws, the ministry pointed out.
Phased Manufacturing Programme (PMP) has been notified to promote domestic value addition in mobile phones and their sub-assemblies / parts manufacturing. Tariff Structure has also been rationalized to promote domestic manufacturing of electronic goods, including Cellular mobile phones.
The Ministry of Electronics and Information Technology on Monday also released the second volume of a 5-year roadmap and Vision Document for the Electronics Sector; the first volume was released in November 2021.
The Vision Document lays the roadmap “to transform India into a US$300 billion electronics manufacturing powerhouse over the next 5 years, from the current US$75 billion. This will make Electronics Goods amongst India’s 2-3 top ranking exports by 2026” said the ministry.
As per the vision document, the electronics goods exports are expected to increase from the projected $15 billion in 2021-22 to $120 billion by 2026.