The components in production in India at present include TV picture tubes (Black & White and Color), monitor tubes, diodes and transistors, power devices, ICs, hybrid microcircuits, resistors, capacitors (plastic film, electrolytic, tantalum, ceramic), connectors, switches, relays, magnetic heads, DC micro motors and tape deck mechanism, PCBs, crystals, loudspeakers and hard and soft ferrites. However, at present, India imports about 55% to 60 % of its component requirements.
Estimated import requirement of electronic components is about US $ 26.60 billion by 2012. There is huge potential to produce and supply components to Indian market itself.
The contract-manufacturing opportunity in India: The global contract manufacturing market presently stands at US$ 149 billion and is expected to grow to US$ 500 billion by 2010. Indian contract manufacturers business is expected to grow phenomenally from a turnover of US$ 774 Million to US$ 2.63 Billion by 2009. It is estimated that the total potential for contract manufacturing in India is US$ 11 billion, or 2.2 per cent of the global market. India could potentially target a share of 1 per cent of the total contract manufacturing in North America, 2 per cent of Western Europe, 4 per cent of Asia and 5 per cent of the rest of the world .