Electronics to beat IT pace in 5 years

Driven by aggressive policy support and a global realignment of supply chains, India's electronics manufacturing industry is set to grow nearly three times faster than the country's flagship information technology (IT) services sector and draw level with it in terms of revenues over the next five years, a top government official said.

- Shouvik Das

"Our goal is to enable both the industries to grow quite rapidly, so that by 2030, India will generate $1 trillion in revenue from the digital economy—with electronics and IT both contributing about $500 billion each by the end of this decade," S. Krishnan, secretary at the ministry of electronics and information technology (Meity), said in an interview with Mint.

Back-of-the-envelope calculations show that through 2030, electronics manufacturing will have to grow at a CAGR (compounded annual growth rate) of 32% to reach that goal. The IT services industry is projected to grow at a more sedate 12% over the same period.

Last year, the electronics sector ended with $125 billion in revenue, while IT services recorded $283 billion.