ARE ELECTRONICS 'MADE IN INDIA,' Or Merely 'Assembled'?

A couple of years ago, India dreamt of becoming a hub for electronics product manufacturing. Today, let’s assess the reality of that dream and identify the key components required to transform it into a substantial industry

- YASHASVINI RAZDAN

The World Trade Organization’s (WTO) Information Technology Agreement ushered in a new era for Indian consumers in 1997, granting access to global consumer electronics brands and cutting-edge technology at competitive prices. From the iconic Sony Walkman, which revolutionised music on-the-go, to the ubiquitous smartphone of today, these devices became integral to our lives.

However, the influx of foreign consumer electronics brands did not bode well for prominent domestic brands such as Onida, Videocon, BPL, Zenith, etc, who struggled to achieve comparable scale and value addition.

Interestingly, the entire electronics market was not rattled by this wave. Certain sectors, such as industrial electronics (energy meters and inverters) and 2-wheeler automotive electronics, remained relatively less impacted by the influx of global brands. This was because these two realms of electronics already had a local ecosystem which designed, manufactured, and produced components domestically. These indigenous manufacturers found a robust market by supplying their products to renowned energy meters and utility companies and automakers such as Bajaj, TVS, Hero, etc, enabling them to maintain their foothold in the Indian market.

Fast forward to today, India’s electronics manufacturing industry is ambitiously aiming for a $300 billion target output, with a hopeful projection of $120 billion in exports by the financial year 2026-27. This growth trajectory aligns with the country’s broader vision of achieving a $1 trillion digital economy by 2025. While these goals are inspiring, it is important to acknowledge a crucial aspect: India continues to heavily rely on electronics imports to meet its domestic demand.