3 Months agoESDM giants from around the world are choosing India as their preferred ER&D hub.
India is one of the fastest growing Electronics market in the world. The rapid growth in the sector has been mainly on the back of rapid urbanization, increasing disposable incomes and growing consumer base. This creates a unique opportunity for companies in the ESDM (Electronic System Design & Manufacturing) sector to look at India as their next destination to cater to the domestic Indian demand as well as act as an exports hub for the world.
- Production figures of Electronics hardware sector on various verticals/sub-sectors
- The Indian electronics and hardware industry is expected to grow at a CAGR of 13% – 16% during 2013–18 to reach USD 112–130 billion by 2018
- India accounted for 1.5% of world’s electronics hardware production in 2014-15
- India has the 2nd largest smartphone user base globally with approximately 220 million smartphone users and above 1 billion mobile phone users
- India is the 2nd largest TV market globally with a base of 168 million television households.
- Mobile phone manufacturing in India has increased by a staggering 185% from USD 2.92 billion in FY14-15 to USD 8.30 billion in FY 15-16.
- India imports above 60% of its total electronics requirement which presents a huge opportunity for import substitution. The export of electronics from India in 2014-15 was USD 6 billion which accounted for about 1.94% of total exports from India while the import stood at USD 36.9 billion in 2014-15.
- Government policies and incentives:
- 100% FDI is allowed under the automatic route in the Electronics Systems Design & Manufacturing except for strategic electronics where 100% FDI is permissible under government route.
- Government initiatives:
Digital India - electronics manufacturing is one of the pillars of Digital India initiative with focus on indigenous manufacturing of FABS, Fab-less design, Set top boxes, VSATs, Mobiles, Consumer & Medical Electronics, Smart Energy meters, Smart cards, micro-ATMs.
National Supercomputing Mission - to connect national academic and R&D institutions with a grid of over 70 high-performance computing facilities at an estimated cost of USD 692 million.
- Modified Special Incentive Package Scheme (MSIPS): The government provides CAPEX and Countervailing duty subsidies for manufacturers for a period of 10 years, till date over 150 proposals have been received worth USD 18 Billion.
- Electronics Manufacturing Clusters (EMC): The government also provides incentives for development of Greenfield and brownfield EMCs. A total of 200 EMCs are envisaged by 2020.
- Schemes to boost Innovation: Launch of Electronics Development Fund (EDF) for innovation, R&D and product development, launch of National Centre of Excellence at IIT Kanpur and Bombay.