Electronics Industry in India

The electronics industry in India emerged around 1965. Its orientation was towards space and defense technologies and was controlled and initiated by the government. This was followed by developments mainly like transistor radios, Black and white TV’s, cal culators and audio products. Then came the coloured TV. 1982 was a very important year since tons of TV’s were brought in for Asian ga mes in New Delhi. There were digital exchanges in 1988. The golden period was from 1984-1990 which saw a rapid and continuous growth in electronics industry. From 1991 onwards, an economic crisis was first triggered by the Gulf War which was followed by economic and political uncertainties within the country. Huge pressure on the electronics industry remained but still growth and development has continued with digitalisation in all sectors, and recently there has been trend towards convergence of technologies. There was a software boom in mid 1990s India's focus shifted towards software. Country witnessed a steep fall in custom tariffs which made the hardware sector suddenly susceptible to international competition. In the year 1997 the ITA agreement was signed at the WTO where India committed itself to total elimination of all customs duties on IT hardware by 2005. In the next few years, a number of companies turned sick and were closed down. At the same time companies like Moser Baer , Celetronix, Samtel Colour etc. made a mark globally. Current Scenario In recent coming years the electronic industry grew at brisk pace. It is currently worth US$ 32 Billion and has the potential to reach US$ 150 billion by 2010. The largest segment undoubtedly is the consumer electronics segment. The electronic industry in India is just about 0.7 per cent of the entire global electronic industry. Hence it is very small by international comparison. However the demand for electronics in the Indian market is growing rapidly and hence investments are flowing in to meet manufacturing capacity. In India the output of the Electronic Hardware Industry is worth US$11.6 Billion currently. India is an exporter of a varied range of electronic products and components for the following segments: • Display technologies • Entertainment electronics • Optical Storage devices • Passive components • Electromechanical components • Telecom equipment • Transmission & Signaling equipment • Semiconductor designing • EMS This growth has already attracted global players to India and leaders like Solectron, Jabil, Flextronics, Nokia, Elcoteq and many more have made huge investments to get access to the Indian market. In consumer electronics the Korean companies such as Samsung and LG have made commitments by establishing huge manufacturing facilities and now enjoy a major chunk of share in the growing market for products such as Televisions, Audio equipment, CD/DVD Players and other entertainment products.

The Growth Drivers Behind the amazing growth of the electronics industry is the consistent and robust growth in Electronic Hardware market which is approximately 25% due to a stable economy & large middle class of 350 million people. The fastest growing segments particularly

penetration of computers & Governments support to rapidly encourage usage of IT in all sectors. in dollar terms it is an increase of 32 % and 29% in rupee terms. The services and software industry continues to show a robust growth and the total value of software and services export are estimated at Rs. • Rising labor costs in China. Some of the other factors are: • Highly talented workforce. . showing a phenomenal growth of 27%.80 billion in the year 2004-05.80 billion. 1. especially for design and engineering services with good communication skills. • Presence of global Electronics Manufacturing Services (EMS) majors in India and their plans for incr eased investments in India.cell phones.117 billion as compared to in 2004-05 about Rs. 1032 billion in 2005-06 compared to Rs. 881. • More and more outsourcing of manufacturing by both Indian and global Original Equipment Manufacturers Electronics Exports During the year 2005-06. In the next 5 years penetration of telephone users (both landline & mobile) is projected to increase from 100 to 500 per thousand while PC's increase from 10 to 30+/ thousand. IT exports and electronics are approximately about Rs. 801. internet subscribers & for it products with increasing falling prices.

Italy and Mexico. Poland and China.000 barrels of oil/day. This concept was relatively new in the presence of other players like ZEE TV's Dishtv. Italy. Telecommunication Videocon Telecommunications Limited has taken license for mobile service operations across India. Tata Sky and Reliance's BIG TV who were providing only the set top box. It had many pioneering offers in the Indian DTH market. Consumer electronics In India the group basically sells consumer products like coloured televisions. microwave ovens. refrigerators and many other types of home appliances. It first launched its services on 7 April 2010 in Mumbai.Videocon Videocon Industries Limited is an industrial conglomerate and is based in Gurgaon. Videocon has since then launched a number of innovative handsets like basic colour FM phones and high-end Android devices. and Videocon offered LCD & TVs with built-in DTH satellite receiver in sizes ranging from 19 inches to 42 inches. oil exploration and telecommunication. DTH Videocon launched its DTH product. Poland. The group is worth US$4 billion. Mobile phones In November 2009. India and is an Indian multinational company. air conditioners. Videocon Mobile Phones launched the revolutionary concept of 0 paise/second with pre-bundled SIM cards of Videocon mobile services and 7 of its handset models in February 2011. It is also known to be the third largest picture tube manufacturer in the world. washing machines. and they follow a multi-brand strategy with the largest sales and service network across India. Airtel Digital TV. new lines of mobile phones were launched by Videocon. The group has mainly 17 manufacturing sites in India and its plants are in China. . power. called 'd2h’ in 2009. Corporate profile: The group's core areas of business are consumer electronics. home appliances and have recently diversified into areas such as DTH. Oil and gas Ravva oil field is an important asset which has the lowest operating costs in the world and is producing 50. Colour picture tube glass Videocon is one of the largest cathode ray tube glass manufacturers in the world which is operating in Mexico.

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