Electronics India's birth as an industry came about in the 1940's when the country
began to manufacture radio receivers with foreign assistance. Electronics India was
a labor intensive industry in the 1970's. The Department of Electronics was created
in 1971 by the Indian government to help the nation to become competitive in the
electronics industry worldwide and to have diversified electronics applications.
Electronics India Today
Today, the Electronics India industry's production output is estimated to be about
$32 billion in 2011 which is more than doubling its output of $14 billion in 2006.
The Electronics India industry covers six broad categories of products from:
Data Processing Electronics Equipment
Military/civil and Aerospace Electronics
Electronics India has benefited from the Government of India's liberalized policies
to encourage trade in 1991. As an industry, Electronics India is turning out to
be a growth engine to India's economy and has experienced double digit growth in
its exports for many years. Electronics India has been increasing as a share of
Electronics devices are slowly becoming part of the Indian way of life and daily
activities as India becomes more developed as a nation. The rapid growth of the
Electronics India industry is due to the proliferation of the consumer electronics
especially the television and audio systems in the 1980's and the personal computer
in the 1990's.
The rapid growth in the demand for electronics equipment in India continues today
where the Electronics India industry employs over 4 million workers in India. Contributing
factors to the Electronics India's success are low labour costs, a large pool of
local talent, and financial incentives from the India government for high tech investment.
This makes India an attractive investment for electronics manufacturing.
Local Influence - Electronics Corporation of India
Electronics Corporation of India (ECIL) began under the Department of Atomic Energy
in 1967 with a goal of generating a strong indigenous capability in the field of
professional grade electronics. The company has become a major influence on the
Electronics India industry over several decades always keeping its mission of self-reliance
in the forefront. Electronics Corporation of India is organized into several business
groups: computers, strategic electronics and communication systems and control systems.
Electronics India Successful Story
LG Electronics India Ltd is a wholly owned subsidiary of Korean electronics giant,
LG Electronics which manufacturers and markets television, washing machines, refrigerators,
air conditioners and microwave ovens. Recognizing that 4 out of 5 Indians live in
rural India, LG Electronics India Ltd began to target rural India and semi-urban
areas since 2002. Almost half of LG Electronics India Ltd's sales came from these
segments and over 3000 towns had a LG Electronics presence just a year later in 2003.
How to Capitalize on Electronics India
There is an opportunity in India for local firms to become a major International
Electronics India company due to the financial incentive support that they continue
to receive from the India Government. In spite of the highly successful Electronics
India industry, the bulk of the items are consumed by the local market. Only a small
proportion of the industry's products are exported. This provides a great opportunity
for importing electronics to India to supplement the local production.