India's electronics manufacturing Expected to double in next five years

As per a study conducted by ICICI Direct, Capital Markets, Consumer Durables, Electronic Manufacturing Services, and Waste Management were the top four sectors with impressive performance in the initial quarter.

ICICI Direct emphasized that in the Capital Markets sector, companies achieved robust performance due to increased volumes, orders, and client acquisitions. The growth of the Asset Management Company (AMC) sector was also driven by strong net equity inflows and all-time high SIP flows.

The evaluation highlighted how the growing middle class and expanding financial inclusion are causing a shift in household savings towards investment options and financial markets, presenting a notable growth opportunity.

ICICI Direct observed that the Consumer Durables sector experienced robust growth in the quarter due to the unusually hot summer season. Increased temperatures led to a greater need for air conditioners, causing consumer durable companies to experience strong revenue growth.

Lower input costs, a better product mix, and operational efficiency all contributed to the expansion of the margins in the consumer durables sector. Factors contributing to the expansion of the industry are limited market reach, a rising middle-class demographic with increased spending power, and fast-paced urban development.

The evaluation showed high demand in various sectors like electric vehicles, aerospace, railways, and consumer durables for Electronic Manufacturing Services (EMS) companies.