The total electronic equipment production in India will reach $32 billion in 2011, compared to $14 billion in 2006, a CAGR of 18%, says a recent study by Gartner. The study mentioned that semiconductor consumption in India will more than double from $2.8 billion in 2006 to $7.2 billion in 2011. The growth in electronic equipment production is being bolstered by the rapidly growing demand for electronics equipments in India.

Gartner study classifies electronic equipments across six broad categories: communications electronics, data-processing electronics equipment, consumer electronics, industrial electronics, automotive electronics and military/civil aerospace electronics.

In 2006, the consumer electronics equipment segment held the top position with 39% share of the overall electronic equipment production in India. While the communications electronics and data processing electronics segment had market share of 38% and 12% respectively.

In terms of the semiconductor total available market (TAM) in 2006, the communications electronics segment held the top position with 46% of the TAM, driven primarily by the increased production of mobile phones. Data-processing electronics segment ranked second accounting for 24% of the semiconductor TAM, driven by the desktop and mobile PC assembling segment.

“The growing domestic demand for electronic equipment, coupled with other favourable factors like low labour costs, large talent pool and various recent policy moves by government of India, including fiscal incentives are making India an attractive electronics manufacturing investment destination,” said Ganesh Ramamoorthy, principal research analyst at Gartner.