With increasing penetration across consumer products, especially in semi-urban and rural markets, the Indian electronic products industry is expected to grow at a compound annual growth rate (CAGR) of 10.1 per cent to reach $75 billion by 2017 from $61.8 billion in 2015, a joint study said here on Monday.
“Rising manufacturing costs in China and Taiwan are compelling manufacturers to shift their manufacturing base to alternate markets. In 2014, the average manufacturing labour cost per hour in India was $0.92 as compared to $3.52 of China,” the study stated. The market is dominated by electromechanical components — which form 30 per cent of the total demand — followed by passive components (such as resistors and capacitors) at 27 per cent, according to an Assocham-EY study titled ‘Turning the Make in India dream into a reality for electronics and hardware industry’. The electronic components industry in India was valued at $13.5 billion in 2015 — growing from $10.8 billion in 2013 at a CAGR of 11 per cent. India’s attractiveness for manufacturers is growing due to availability of low-cost labour.