Major Electronics Firms See Decline in Imports in FY24 Amid 'Make in India' Push

In a notable shift, leading electronics firms including Samsung, Apple, Whirlpool, Dixon, and Havells have reported a decline in imports for the financial year 2023-2024, driven by India's growing focus on local manufacturing and the success of the 'Make in India' initiative. This marks the first such decline in at least six years, signalling a shift towards greater self-reliance in the electronics sector.

The combined import value of eight major electronics firms fell by 7 per cent year-on-year in FY24, totalling Rs 95,143 crore. This decrease follows a trend where the import value had crossed Rs 1 lakh crore in FY22 and continued to rise in FY23. Experts suggest this year’s reduction in imports is unprecedented, as the consumer electronics industry has traditionally been highly dependent on imported components.

The push for localisation has led to significant value addition in India’s home appliances sector, particularly in products like refrigerators, air conditioners, and washing machines. Key components, including compressors, motors, sheet metal, and heat exchangers, are now being manufactured locally, which has further reduced reliance on imports.

Sunil Vachani, Chairman of Dixon Technologies, emphasized the growing local manufacturing capabilities, stating, “Value addition in India has become high in home appliances like refrigerators, ACs, and washing machines, where all critical components are now locally manufactured.”

The government's Production-Linked Incentive (PLI) scheme has played a key role in promoting large-scale electronics manufacturing in India. The scheme received a significant boost in the interim Budget for 2024-2025, with its outlay increased to Rs 6,200 crore. Last year, 27 companies, including global tech giants such as Dell, HP, Foxconn, and Lenovo, were approved for the PLI scheme, further strengthening the local manufacturing ecosystem.

This decline in imports by major electronics firms underscores the progress India has made in becoming a more self-sufficient hub for electronics production, with the government’s support playing a crucial role in driving this transformation.