Dolat Capital: Electronic System Design And Manufacturing Sector - A New Growth Area

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.In India, electronics production has grown rapidly from Rs 1.9 trillion in 2014-2015 to reach Rs 4.58 trillion in 2018-2019 at a compound annual growth rate of around 25%.However, there has been no direct benefit for the domestic economy due to high reliance on imports at approximately 60%. Imports from countries like China and Vietnam are cheaper not only due to scale but also due to lower finance costs, logistics etc.As per industry estimates, the disadvantage is approximately 8-11% across various products. This is even higher in mobiles as approximately 80% of the smartphones manufactured in India are actually completely knocked-down units coming into the country and getting assembled.To address this, the government has come with a total incentive cap of Rs 500 billion ($6.7 billion) targeting production of Rs 8 trillion ($107 billion), export at Rs 5.8 trillion ($77 billion) and generating employment for more than 1 million people by 2025.To overcome the cost disadvantage, the government has rolled out various policies including the production-linked incentive scheme where the incentive of 4%-6% is applicable in the first five years, so that Indian manufacturing moves closer to a level playing field with global peers..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dolat Capital: Electronic System Design And Manufacturing Sector - A New Growth Area

Dolat Capital: Electronic System Design And Manufacturing Sector - A New Growth Area

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