Indian electronics market to profit from GST
Electronics manufacturing market in India is anticipated to cross the $104 Billion line by the end of 2020 and local manufacturers will profit from Goods and Tax Service (GST) rule execution since price will considerably go down, claims a report. In spite of a huge leap in expected manufacture by the end of 2020, the local production will meet only 26% of the domestic demand, the joint survey performed by NEC Technologies and industry chamber Assocham claimed.
“GST will give a huge boost to the Indian electronics market thus leading to following elevation in demand of home-manufactured goods,” stated the report titled “Electricals & Electronics Manufacturing in India.” Under GST rule, dropping impact of taxes will be eradicated, the study claimed adding that companies will also be saving expenditures earned in logistics and warehousing, which stood at roughly 5–8%.
As a result, domestic manufacturers will be allowed to pass on the duty benefit to users in the form of price deduction, the report claimed. In 2015, entire electronics production in India reached almost $31 Billion and in 2020, is anticipated to elevate to $104 Billion, as per the survey. “Domestic manufacturing is anticipated to rise at a rate of 27% CAGR during the time frame from 2016–2020 to reach $104 Billion target of 2020, as compared to the rate of 9.6% CAGR from 2010 to 2016,” it claimed.
The global electronics market is esteemed at $1.75 Trillion, it further added. While speaking of demand, the survey report claimed that it is anticipated to grow at a rate of 41% CAGR from 2016 to 2020 to reach the target of $400 Billion by the end of 2020. This flow in demand is enormous, which indicates a positive attitude for the market, it further added. On the other hand, it said: “Even though there is a huge jump in the anticipated production numbers for 2020, the local production is anticipated to meet only 26% of the local demand.”
Well, one thing is for sure that the Indian electronic market will be receiving a huge boost in the current as well as subsequent fiscal year.