DATA SOURCES AND METHODOLOGY

A multi-dimensional approach has been adopted for the study on Consumer Electronics
Exports of India. The present study based on secondary sources. The data collected from
Electronics and Computer Software Export Promotion Council of India (ESC). Simple
Statistical tools like percentages, annual growth rates have been used wherever necessary.
Consumer Electronics: Consumer electronics (CE) refers to any electronic devices designed
to be purchased and used by end users or consumers for daily and non-
commercial/professional purposes. Consumer electronics are among the most commonly used
form of electronic, computing and communication devices. Consumer electronics or home
electronics are electronic equipment intended for everyday use, typically in private homes.
CE devices used for entertainment (flat screen TVs, DVD players, video games, remote
control cars etc.), communications (telephones, cell phones, e-mail- capable laptops etc.), and
home-office activities(e.g., desktop computers, printers, paper shredders, etc.).

High production in the Indian electronics market can be attributed to pace up demand for
advanced computers, mobile phones, TVs, and defence-related electronics. The situation in
this market mandates manufacturers to keep themselves. updated with the latest technology,
since it is eye-catching to typical consumers, and technological features play an apex role
while selling to higher-income classes.
Factors Affecting Consumer Electronics Industry in India

The following factors are affecting Indian consumer electronics goods industry in India:

 Rise in Disposable Income

Intentional reduction by the Government in the import bill. coupled with government and
corporate spending is anticipated to complement the positive demand in this market. The
India consumer electronics sector has attracted several strong investments in the form of
merger & acquisition policies practiced by key participants of the global market and other
FDI inflows. With the advancing technology, there is trend of smart offices and smart homes,
where consumer electronics is an important part of it. Rising disposable income of the people
of consumer electronics and their shift in preferences towards smart homes and smart offices
environment, are thus majorly driving the growth of the industry. High end products still has
to go a long way to acquire larger industry share in India.
Consumer Electronics Trends According to PwC's report, the Indian home appliances and
consumer electronics market is expected to grow by 10% on a CAGR till 2022. Make in India
initiative have boosted the Consumer Electronics design and manufacturing industry in India
and as a result we will witness a tremendous growth in the industry over next 5 years. E-
Commerce is also one of the reason for increase in demand and sales of consumer products
and electronics. Consumer electronics (durables) sector continues to be the main stay of the
Indian electronic industry contributing about 32 per cent of the total electronic hardware
production. By the end of 2009- 10, the market for consumer durables (including
entertainment electronics, communitarian and IT products) was Rs 190 billion (US $4.7
billion). The market is expected to grow at 11 to 13 per cent annually and is expected to reach
Rs 65 billion. (US$13.6 billion) by 2010. The urban consumer durables. market is growing at
an annual rate of seven to 10 per cent, the rural durables market is growing at 25 per cent
annually. Some high-growth categories within this segment include mobile phones. TVs and
music systems. Table 1 represents the production and exports of consumer electronics in
India. It is clear from the Table that the value of consumer electronics produce increased from
Rs. 22600 crores in 2007-08 to Rs. 83154 crores m 2017-18 The percentage change over the
previous year in the production of consumer electronics registered positive growth during the
study period. However there are fluctuations in the annual growth during the 2007 to 2018. In
the year 2017-18 there is a momentum in the production. Table I also shows the exports of
consumer electronics in India. It is clear from the table that the value of consumer electronics
export is ranged between Rs. 1600 crores in 2007-08 and Rs 2334 crores in 2017-18. There
are much up and downs in annual growth of the exports of consumer electronics. During the
study period the highest percentage changes over the previous year rewarded in 2013-14 to
the extent of 215.68 per cent. This implies that the export of consumer electronics from India
is not consistence during the study period. That is depicted in the bar diagram.
Destinations of consumer electronics exports in India:

Table 2 indicates that the direction of trade of consumer electronics from India. It is clear
from the table that the exports of India to Singapore, Hongkong & other South Asian.
Countries ranged between 19.25 per cent in 2007-08 and 38.21 per cent in 2017-18, to EU
countries ranged between 10 per cent in 2007-08 and 17.31 per cent in 2017-18, to North
America range between 36.75 per cent in 2008-09 and 1.88 per cent in 2007-08. The exports
of India to Japan Korea other Far East Countries Australia & Other Ocean Countries ranged
between 0.56 per cent in 2008-09 and 5.02 per cent in2016-17. Singapore, Hongkong & other
South Asian Countries have the highest share (Rs.892 Crores) of exports from India. It
implies that the share of Singapore, Hongkong & other South Asian Countries is highest
followed by African countries, European Union and Middle East countries to the percentage
of 12.94, 1731 and 15.17 respectively. The share of exports to other countries is considerably
low.
Top exporters of consumer electronics in India: Table 3

give the top 10 exporters of consumer electronics is selected years along with the value of
exports. It is observed from the table that there is much diversion in the production of
consumer electronics among the companies. For instance in 2008 LG Electronics India Pvt.
Ltd exported the highest value of consumer electronics and in 2016-17 the Videocon
Industries Ltd. exported the highest amount. The value of exports by LG Electronics India
Pvt. Ltd is Rs. 134439.74 lakhs in 2007-08 and by Videocon Industries Ltd. is Rs. 37224
crores in 2016-17.
Major items of consumer electronics exports in India: Cable digitalization is also expected to
cater to a rise in demand for televisions in India. Platforms for special interests, local
channels in regional languages, as well as capacity to support a wide range of channels due to
digitalization of cable network have spurred a rise in demand for televisions. Also, the
introduction of novel TV sets by key industry participants such as Sony and Samsung are
expected to contribute to an overall rise in demand for televisions over the forecast period.
Table 4 give the top 10 major items of consumer electronics exports is selected years along
with the value of exports. It is clear from the table that there is more diversion in the export of
consumer electronics between the major items. However in 2007-08 Television is exported
the highest volume of consumer electronics and in 2017-18 Smart Cards exported the higest
amount. The volume of Television exports in 2008-09 is Rs 30669.14 lakh, in 2017-18 the
volume of Smart Cards is Rs. 683 crores.
Major findings of the study: A few of the findings emanating from the study are
 Large amounts of the produced electronic waste from developed countries is exported,
and handled by the informal sector in countries like India, despite the fact that
exporting electronic waste to them is illegal Desktop monitors and laptops produce
major physical health concerns for humans when bodies are forced into positions that are
unhealthy and uncomfortable in order to see the screen better.
 Heavy taxation in the country is one of the challenges for the players. At its present
structure the total tax incidence in India even now stands at around 25-30 per cent.
whereas the corresponding tariffs in other Asian countries are between 7 and 17 per
cent.
 Poor infrastructure is another reason that seems to have held back the industry. Regular
power supply is imperative for any consumer electronics product. But that remains a
major hiccup in India.
 The rising rate of growth of GDP, rising purchasing power of people with higher
propensity to consume with preference for sophisticated brands would provide constant
impetus to growth of white goods industry segment
 Inadequacy of domestic investment, inability to attract foreign investment, mega
investments from multinational companies.
 Major recommendations
 The government, in an attempt to encourage manufacture of consumer electronics in
India has changed the tariff structure significantly
 While the consumer durables market is facing a slowdown due to saturation in the urban
market, rural consumers should be provided with easily payable. consumer finance
schemes and basic services, after sales services to suit the infrastructure and the existing
amenities like electricity, voltage etc.
 Currently, rural consumers purchase their durables from the nearest towns, leading to
increased expenses due to transportation. Purchase necessarily done only during the
harvest, festive and wedding seasons - April to June and October to November in North
India. and October to February in the South, believed to be months good for buying",
should be converted to routine regular feature from the seasonal character

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