Domestic electronics sector set to grow 12-17% in FY22: CRISIL SME Tracker

As the economy recovers, so should discretionary spending, which again will be salutary.

The domestic electronics sector’s revenue is set to rebound 12-17 per cent to ~8-8.3 trillion in the current fiscal year (FY22), helped by the low-base effect of fiscal year 2021 and government facilitations such as the Production-Linked Incentive (PLI) scheme, which promotes manufacturing rather than just assembling of products.

The outlook, therefore, has improved for the domestic electronics sector, including small and medium enterprises (SMEs) that account for 20-40 per cent of the industry’s revenue.

Segments such as mobile phones, consumer and industrial electronics, computer hardware and strategy (constituting over 70 per cent of industry revenue) are expected to see