What fueled India’s electronics market surge in 1st half of 2023?

In the dynamic landscape of consumer technology in India, the first half of 2023 has brought about a noteworthy shift. Even though there has been a minor 4% decrease in smartphone sales, their worth has risen by an impressive 12%. This implies that consumers are gravitating towards high-end devices.

What’s particularly striking is the phenomenal growth in smartphone exports, marking a 353.49% increase, catapulting to a remarkable $7.48 billion. Concurrently, the telecommunications sector exhibited commendable resilience, and categories like air conditioners and washing machines thrived.

IBT examines products in India that are experiencing significant success in terms of both volume and value.


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The Indian consumer electronics market experienced notable growth and development in the first half of this year. The technical consumer goods (TCG) sector, which encompasses a range of electronic products and gadgets, exhibited an impressive 8% increase in overall value compared to the same period in the preceding year. This expansion underscores the robustness of the consumer electronics sector in India, as consumers persist in adopting advanced features and innovative experiences in their electronic devices.

Smartphone Market Dynamics

According to GfK Market Intelligence, which monitors physical store sales, the value of smartphones and mobile phones increased by 12%, despite a 4% drop in sales. Moreover, several other industries witnessed growth in both the quantity and value of their products during H1 2023 compared to H1 2022.

In the first half of 2022, smartphone exports from India totaled US$1.65 billion(In the first half of 2022, smartphone exports from India totaled US$1.65 billion. However, during the first half of 2023, these exports witnessed an extraordinary growth of 353.49%, surging to an impressive US$7.48 billion. This remarkable increase highlights the significant expansion in smartphone exports).

During the first half of 2023, there was noticeable growth in the premium smartphone segment, which includes phones priced above Rs 30,000. Observations from the data reveal that premium smartphone sales volume experienced a remarkable 50% surge, coupled with a 54% growth in value. This shift in consumer preferences highlights the increasing demand for advanced features, innovative technology, and an enhanced smartphone experience.

Soumya Chatterjee, market expert- technical consumer goods – India, GfK, said “The Indian consumer market is undergoing a transformation driven by evolving consumer preferences and a growing appetite for innovative products. The growth highlights the resilience and adaptability of the Indian consumer market in the face of changing dynamics. The Technical Consumer Goods market exhibited an 8% growth in value. Meanwhile, the Consumer Electronics (CE) sector saw a 13% surge in volume, demonstrating a strong market presence.”

Telecom and other domestic appliances

In the first half of 2023, the telecommunications sector showed strong performance, marked by a 12% increase in value, even though there was a slight four per cent decrease in volume. Specifically, the smartphone segment saw a three per cent increase in volume, leading to an impressive 14% growth in value.

The major domestic appliances category exhibited promising growth. Air conditioners saw a seven per cent increase in volume and a 9% rise in value. Washing machines followed closely with a 6% growth in volume and a 10% increase in value. Microwave ovens maintained a steady performance, showing a 4% growth in volume and a modest three per cent increase in value.

Furthermore, the GfK Consumer Life 2022 Report suggests that Indian consumers have a desire for an immersive entertainment experience. Within the consumer electronics sector, audio home systems experienced a 21% surge in volume, accompanied by a 12% rise in value, highlighting a market presence. PTV/Flat televisions exhibited a growth trajectory with a 13% volume increase, while value growth remained at two per cent.

Additionally, in the information technology sector, the desktop computing segment has maintained steady growth, achieving a 7% increase in volume and a 9% increase in value, reflecting its consistent market positioning.

On the other hand, mobile PCs have experienced a 14% decline in value, while gaming laptops have shown a 6% growth in sales value. The gaming industry has expanded during the pandemic. Also, 74% of urban Indians surveyed have played video games on a personal computer at least once, and 88% have played games on tablets. IT devices like PCs still have an estimated penetration of less than 10% in India, indicating a substantial growth opportunity.

In contrast, media tablets experienced a 10% growth in volume and a 17% increase in value, reflecting the continued demand for versatile and portable computing solutions. The surge in media tablet sales signifies a shift in consumer behaviour, with people increasingly seeking entertainment and productivity on the go, valuing devices that cater to these needs.

According to the report, one out of every two consumers prefers to purchase products through online channels. This preference is reflected in the GfK Online Market Sensor reports, which show strong demand for consumer tech products in the first half of 2023 as consumers continue to realize the advantages of online shopping.

Furthermore, panel televisions, refrigerators, and mobile PCs have registered high sales volume growth of 42%, 29%, and 28% respectively, while health and well-being categories like washing machines and water purifiers have witnessed a volume growth of 11% and 18% respectively.

According to the report, there has been growth in various sectors, but the penetration of certain products remains relatively low, signalling opportunities for industry leaders to explore further. The growth indicates a strong demand for cooling solutions, driven by factors such as rising temperatures and an increased emphasis on home comfort. However, despite this observed growth, there is still room for further expansion, as indicated by the low penetration of these products.


In conclusion, the evolving market dynamics reveal a significant trend: a rising desire among Indian consumers for an enriched and captivating entertainment experience. These insights underscore the industry’s ability to adjust to consumer preferences, setting the stage for an engaging and innovative future in consumer electronics. 

Additionally, the data illustrates growth across diverse product categories, emphasizing the prospects within the Indian consumer market. While online shopping provides convenience, it’s worth noting that a substantial portion of buyers conduct online research but ultimately make their purchases offline. This indicates a blending of the lines between online and traditional shopping, reflecting the evolving consumer landscape.

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