India has $100 bn opportunity via local manufacturing of laptops, tablets
NEW DELHI: India has $100 bn opportunity via local manufacturing of laptops, tablets – India can obtain a large share of the worldwide market by becoming the hub for laptops and tablets. Such a move will provide a manufacturing value of $100 billion by 2025 and can also create 5 lakh additional jobs, ICEA said during a statement.
With almost a tune of $75 billion and an investment of over $1 billion. At an equivalent time, it might negate imports of targeted products from China resulting in the reduced deficit and greater self-reliance,” said Pankaj Mohindroo, Chairman of the India Cellular & Electronics Association.
India features a strong opportunity to become a big part of the worldwide supply chain in electronics,” he added. ” “To reach the NPE,2019 targets and for turning into the worldwide manufacturing hub, We cannot depend upon Mobile phone manufacturing alone.”
India’s import of laptops is estimated to succeed on the brink of $5 billion out of which imports from China are going to be $4.35 billion by March 2021, industry body ICEA said.
India’s import of laptops has increased by 42% from $2.97 billion to $4.21 billion in value terms within the last five years. 87% of total imports come from China with high dependency––it has increased from US$ 2.83 billion to US$ 3.65 billion during the last five years. For the year ending March 2021,” ICEA said during a statement.
As per estimates, the worldwide marketplace for laptops, tablets, and desktop computers has grown from $229.38 billion in 2018 to $240.99 billion in 2019 and is predicted to stabilize around $220 billion by 2025. Only 6 global players comprise 89% of the market shipments for laptops and 81% for tablets. The US and European Union together represent quite 40% of the worldwide market.
The global manufacturing hubs are limited to a couple of nations with China being the predominant supplier to the planets with a 66% market share (2019) with $100 billion in value. This shows that there’s tremendous scope for policy intervention to start out manufacturing laptops and tablets in India for domestic also because the global market, ICEA said.
India has a chance to become the hub for laptops and tablets by capturing 18% of the worldwide exports, ICEA said.
ICEA represents companies like Apple, Xiaomi, Motorola, Nokia, Foxconn, Wistron, Flextronics, Lava, Vivo, Motorola, Oppo, Realme, Micromax, Dixon, Salcomp, et al.
The global marketplace for electronics is approximately $2.1 trillion. Among electronic products, mobile phones, laptops, and tablets function as the first instruments for communication.
The global marketplace for laptops and tablets is predicted to be around $220 billion per annum over the subsequent five years while In India, the market size is estimated to still be around $7 billion for an equivalent period, as per ICEA-EY report.
These devices fall into the category of data Technology Agreement-I (ITA-1) products. Thus, the essential customs (BCD) on their import is zero on such imports as there are an inherent cost arbitrage and benefit to importing these devices as against their manufacturing in India exports are promoted, it’s unlikely that the domestic market will offer any additional growth for companies meaning to manufacture in India,” ICEA said.
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