SWOT
Analysis
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India Consumer Electronics Market SWOT
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Strengths
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§ The domestic market is entering a rapid
growth phase, with projected double-digit growth of key products such as
notebook computers and mobile handsets.
§ Low rates of penetration for key products
such as computers (2%) and mobile phones (43.5%).
§ Rising incomes and GDP growth are increasing
affordability.
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Weaknesses
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§ Low incomes and huge digital inequalities.
§ Large 'grey' market for illegal products.
§ Relatively low level of demand for higher
end products such as LCD TV and 3G phones.
§ Infrastructure deficiencies, with only 20%
of Indian houses capable of receiving broadband.
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Opportunities
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§ Rapid growth in mobile subscriber
penetration to 145% by 2015 will drive booming mobile handset market.
§ Big opportunity for expansion in
underpenetrated semi-urban and rural areas.
§ Hardware sector set to grow faster after a
number of government measures to encourage domestic manufacturing and new
investment incentives under consideration.
§ The government's efforts to get India
connected to the modern world will provide the frame for electronics market
development over the next few years. The ultimate goal of government policy
is for 1bn computers connected to the internet -- equivalent to the total number
of PCs in the world today.
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Threats
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§ Global economic slowdown may affect consumer
spending.
§ Moves to stimulate the hardware sector
having mixed results.
§ Falling prices.
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India Electronics Industry SWOT
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Strengths
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§ Electronic hardware production of US$21bn in
2008, with growth set to be driven by emerging domestic market for
electronics devices.
§ Government support and incentives for
hardware manufacturing, with new IT Amendment Bill currently under
consideration by parliament.
§ Growing foreign investment with proposed
investment in manufacturing facilities in the region of INR155,000 crore.
§ Abundant availability of skilled and
technically qualified manpower.
§ A further range of incentives, such as tax
advantages and subsidies for semiconductor manufacturers, which have already
attracted US$7bn in investments.
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Weaknesses
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§ Intellectual property rights problem and
piracy.
§ Consumption of hardware is currently
estimated to be about double the level of domestic production.
§ Despite the government's ambitions, India
still has not emerged as a significant semiconductor manufacturing centre.
§ Domestic consumer electronics market
dominated by foreign brands, with few Indian brands competitive in most
product categories.
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Opportunities
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§ State and federal level reforms to encourage
more investment into the sector and encourage domestic manufacturing.
§ India emerging as a centre for chip design
services, with the market worth about US$5bn, and embedded software.
§ More than US$18bn invested in hardware
manufacturing.
§ Colour TV computers and mobile phones.
§ LCD TV, with government digitalisation
policy having potential to drive spending.
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Threats
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Slowdown
in global computer and consumer electronics applications markets.
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Moves
to stimulate the hardware sector having mixed results.
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