The domestic electronics sector’s revenue is set to bounce back 12-17 percent to ~8-8.3 trillion in the current fiscal year FY22, reports Business Standard. This growth will be accelerated by the low-base effect of fiscal year 2021 and government facilitations such as the Production-Linked Incentive (PLI) scheme, which promotes manufacturing rather than just assembling of products.
The outlook for the domestic electronics sector has improved, including SMEs that account for 20-40% of the industry’s revenue. Segments including mobile phones, consumer & industrial electronics, computer hardware and strategy are expected to witness robust growth. Together these segment constitutes over 70% of industry revenue, however mobile phones will lead the growth with 15-20% year-on-year growth (expected).
This growth is largely driven by the pandemic that has suddenly triggered the mobile phone and computer hardware segments due to work from home and even kids having their online schools. Together, the new normal and the PLI is expected to boost the prospects of the domestic electronics sector further. It is expected that as demand improves and pricing pressure reduces once the economy bounce back, the margins should expand by 0-50 basis points this fiscal year.
