New Delhi [India], August 24 (ANI): India is looking to sharply increase its electronic component production as the country's total electronics production is targeted to reach USD 500 billion by FY31, according to a report by Kotak Mutual Fund.
The report showed that electronic component production is projected to rise from USD 10.5 billion in FY24 to USD 150 billion by FY31. This represents a more than 14-fold increase over the period.
The expected rise in component production stands out as one of the major changes in India's electronics manufacturing landscape. While mobile phone production is also projected to grow significantly, the increase in electronic components is expected to be much faster.
According to the report, mobile phone production stood at USD 51 billion in FY24 and is estimated to rise to USD 159 billion by FY31. This means mobile phone production is expected to more than triple during the period.
The report's projections indicate that electronic components could become a much larger part of India's overall electronics production by FY31. Component production is expected to increase by around USD 139.5 billion during the period, compared with an increase of USD 108 billion in mobile phone production.
The report also estimates that mobile phones will remain the largest category, with production expected to increase from USD 51 billion in FY24 to USD 159 billion by FY31.
Consumer electronics, including televisions, audio products and accessories, are projected to rise from USD 13 billion to USD 36 billion during the same period.
IT hardware, including laptops and tablets, is expected to increase from USD 5 billion in FY24 to USD 32 billion by FY31. Wearables and hearables are projected to rise from USD 2.5 billion to USD 38 billion, while auto electronics could increase from USD 8 billion to USD 33 billion.
Telecom equipment production is estimated to grow from USD 3.5 billion to USD 15 billion. The report also projects the 'Others' category to rise from USD 21.5 billion to USD 37 billion.
The projections show that while India's mobile phone manufacturing sector is expected to remain a major part of the electronics industry, the country's growth ambition increasingly includes a wider range of products and electronic components.
The sharp projected rise in component production, from USD 10.5 billion to USD 150 billion, therefore stands out in the report's estimates as India targets total electronic production of USD 500 billion by FY31. (ANI)
India eyes 14-fold jump in electronic component production by FY31: Report
