In a significant shift, major electronics firms such as Samsung, Apple, Whirlpool, Dixon, and Havells have reported a decline in imports for the financial year 2023-2024. The combined import value of these companies dropped by 7% year-on-year to Rs 95,143 crore, according to regulatory filings with the Registrar of Companies (RoC). This marks the first time in at least six years that imports have fallen.
The total import value for these firms had exceeded Rs 1 lakh crore in FY22, increasing further in FY23. However, the decline in FY24 signals a major change in the industry, which has traditionally relied heavily on imports.
Increased Local Manufacturing Drives Shift
Industry executives attribute the fall in imports to the rising localisation of production. “Value addition in India has become high in home appliances like refrigerators, ACs, and washing machines, where all critical components like compressors, motors, sheet metal, and heat exchangers are now locally manufactured,” said Sunil Vachani, Chairman of Dixon Technologies.
This shift is seen as a direct result of the ‘Make in India’ initiative and growing localisation efforts by major firms. The government’s Production-Linked Incentive (PLI) scheme has also played a role in boosting local manufacturing.
PLI Scheme Boosts Electronics Manufacturing
The government’s PLI scheme for large-scale electronics manufacturing has received a significant boost in the interim Budget for 2024-2025. The scheme’s outlay has been increased by nearly 1.5 times to Rs 6,200 crore.
Last year, 27 companies, including Dell, HP, Foxconn, and Lenovo, were approved for the PLI scheme aimed at IT hardware. The initiative is expected to further encourage local manufacturing and reduce dependency on imports in the electronics sector.
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