Market Structure of Indian Electrical Industry

A decade ago, nobody expected that electronic & electrical goods would become a necessity and make as strong place in human's life as it is right now. Half of an American’s average 5.1 hours of daily leisure time devoted to watching television. If we look at its market opportunities, it is stupendous. The electronics market in India is forecast to touch $125 billion by 2014 from the present market of $45 billion. India's semiconductor market is also following suit and its market is expected to reach $7.59 billion in 2010. The consumption of electronic gadgets was valued at USD 28.2 billion in 2005, but anticipated to touch USD 363 billion by 2015. Indigenous production of electronic equipments in India was 10.99 billion in 2005, but expected to get at USD 155 billion in 2011.

 

It is matter of immense pride that India has been ranked 1 in some of engineering services in the world, though Indian electronic industry is still in a nascent stage. The chief element behind the success of Indian electronic & hardware industry is a quantum jump in market demand and a splendid rise in production of semi conductors. Liberal government policy, vast pool of industrial expertise, lucrative investment, conducive environment, and finest manufacturing facilities have made India one of the superiors in electronics and hardware industry.

 

It is no wonder that electrical & electronic czars are gradually shifting their base to Asia pacific regions in order to meet burgeoning market demands. If we talk about Asia pacific regions that means China, Japan, North & South Korea, Singapore and India are the top manufacturer of electrical and electronic products. And it is expected that India will soon become the preferred destination for consumer electronics. There is an anticipation that the electronics industry will be four times as big as today and half of it will seep into Asia within 20 years. The value of global electrical market was USD 1038.8 billion in 2006 and the size of the industrial electrical goods industry was USD 651.3 billion. In connection with electronics parts and components sector, the total market share was about USD 282.7 billion, where as home electronics was USD 104.7 billion.

 

The contribution of Indian electronics and electrical industry to GDP is phenomenal and the industry offers overwhelming opportunities for electronic equipments manufacturing. Electric equipment industry contributes over 2 per cent of GDP which is expected to rise to around 12 per cent in 2015. A study conducted by Frost & Sullivan, shows that consumption of electrical equipment is estimated to go up from over USD 28 billion now to USD 363 billion. It is a little wonder that during 2010-2015, the Indian electrical equipment manufacturing will swell at 5.5 times the growth rate of global electronic equipment production. All above indicators show that the prospect of electrical & electronic industry in India is quite promising and lustrous.