Electrical machinery and electronics is a USD 2.9 Trillion import market, the size of global imports of Electronic integrated circuits accounts for USD 883 Billion.

The global imports of electrical machinery increased from USD 2,745 Bn in 2017 to USD 2,962 Bn in 2020. The top 6 product lines which accounted for approximately 66% of global electrical machinery exports are (i) Electric circuit boards, (ii) telephone sets (iii) integrated wires and cables (iv) Diodes, transistors and similar semiconductor device (v) Electrical apparatus for switching or protecting electrical circuits (vi) Electrical transformers, static converters A detailed list of products being imported globally is elaborated in annexure 1.

Asia is the key import markets accounting for approximately 55% of global imports of electrical machinery and electronics imports. Other key markets with appreciable share in electrical machinery imports are Europe and North America.

China is the largest importer accounting for 18% of the total import, followed by US contributing around 12% of the global import. Other mid-size import markets with a high rate of growth of imports are Germany, Mexico, UK, Japan, Vietnam, Malaysia, etc. markets with appreciable import values are Canada, Brazil, Russia, Australia, Asian countries like India, Indonesia, Philippines, European countries including France, Italy, Poland, Austria, hungry, Czech Republic, etc. China is the largest exporter of electricals & electronic contributing 25% of the total exports, followed by US, South Korea, Germany each accounting for 6% of the global exports. Mid-sized countries with high growth rate of exports are mexico, vietnam, malaysia and japan. Other countries with appreciable growth are thailand and European countries including sweden, Uk, Spain, France, Italy, Poland, Austria, Hungary, Czech Republic, Slovakia, etc.

Electricals & electronics exports from Uttar Pradesh grew from USD 769 Mn in 2016 to USD 3,701 Mn in 2021, growing at a CAGR of 58% in the last 4 years.

Electricals & electronics is one of the key products being exported from Uttar Pradesh. UP’s share in India’s electrical & electronics exports increased from 9% in 2016 to 29% in 2021. On an average, UP contributes to ~18% of India’s exports in this sector, averaged for the last 4 years. In 2020 the exports were USD 1,529 Mn but after the post COVID impact the export from the state rebound back with 142% to USD 3,701 in 2021.

Uttar Pradesh is an active exporter of HS 85, and among the different products, approximately 80% of the total export under the HS 85 is contributed by Telephone sets, telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, apparatus for communication in a wired or wireless network.
A detailed list of products being exported from Uttar Pradesh is attached in Annexure 2.

UAE and Russia are the key export destination for electricals & electronics exported from Uttar Pradesh, followed by US and Germany. UAE, Russia and US together account more than 50% of the total exports from the state.

Select 12 markets account for 80% of UP’s electrical machinery exports globally. The key markets served by electricals & electronics exporters from Uttar Pradesh are UAE (34%), Russia (12%), US (6%), Germany (5%), South Africa (5%), Nepal, Vietnam, UK, Turkey and Italy each accounts for to 3% and France and Morocco each contributes to 2% of UP’s export. UP’s exports have also showcased appreciable diversification to markets like, Netherlands, Kazakhstan, Spain, Ukraine, Bangladesh, Thailand, South Korea, Jordan, etc. The heatmap in figure 7 illustrates the distribution of Uttar Pradesh’s electricals & electronics exports across the globe. A list of markets that are being catered by UP’s exports is detailed in Annexure 3

Key export opportunities are identified for electricals & electronics exporters of Uttar Pradesh in terms of potential for scaling up of exports and export diversification opportunities as shown in figure 8. For scaling up of exports, the markets being catered by UP’s exporters at present (contributing ~66% of UP’s exports or top 10 markets) are identified. For export diversification, market opportunities are identified based on their share in global imports. At a market level, existing products and new products are identified for scaling up and diversification of exports. A comprehensive list of product level opportunities in the identified target markets is detailed in annexure 4.

G.B. Nagar in Uttar Pradesh has emerged as one of the key hubs of electricals & electronics manufacturing in the state. The district contributes to approximately 90% of the manufacturing output from Uttar Pradesh.
The proximity of G.B. Nagar with the IGI airport, ICDs at Dadri and Tughlaqabad enables fast paced movement of goods. The upcoming transportation and logistics projects in the district like, Multi-modal logistics hub, Jewar airport will further improve the logistics ease for exporters of the state and G.B. Nagar in particular. G.B. Nagar also lies on the western and eastern dedicated freight corridors. Other key manufacturing districts in the state are Ghaziabad, Jhansi, Lucknow, Meerur, etc.

Electrical Machinery Manufacturing districts in UP (INR Th. Cr.)

Supporting organizations for electricals and electronics sectors

Incentives under Uttar Pradesh Electronics Manufacturing Policy 2020, Dept. of IT and Electronics, Govt. of UP

Incentives under Uttar Pradesh Data Centre Policy 2021, Dept. of IT and Electronics, Govt. of UP

Incentives provided by the central government for electricals and electronics sector