Electronic Systems

  • The Electronics System Design & Manufacturing (ESDM) industry includes electronic hardware products and components relating to information technology (IT), office automation, telecom, consumer electronics, aviation, aerospace, defence, solar photovoltaic, nano electronics and medical electronics. The industry also includes design-related activities such as product designing, chip designing, Very Large-Scale Integration (VLSI), board designing and embedded systems.
  • India is recognised as a global hub for IT services and has emerged as the world’s 3rd largest start-up ecosystem*
  • Digital India, a flagship programme of Government of India, aims to transform India into a digitally empowered society and knowledge economy.*
Reasons to Invest
  • India committed to reach USD 300 bn worth of electronics manufacturing and exports by 2025-26.*
  • AI is expected to add USD 967 Bn to Indian economy by 2035 and USD 450–500 bn to India’s GDP by 2025, accounting for 10% of the country’s USD 5 Tn GDP target.*
  • Government is laser focused on achieving target of USD 300 bn electronic production by 2026.*
  • GOI aims to make Electronics Goods amongst India’s 2-3 top ranking exports by 2026. Electronics Goods exports are expected to increase from the projected USD 15 bn in 2021-22 to USD 120 bn by 2026.*
  • Major Government initiatives such as ‘Digital India’, ‘Make in India’ and supportive policies including favourable FDI Policy for electronics manufacturing have simplified the process of setting up manufacturing units in India.


Explore more about infrastructure availability in Electronic Systems sector >

Key Achievements
  • Petascale Supercomputer Param Shakti, new high-performance computational facility to aid researchers to solve large-scale problems of different fields of Science and Engineering is launched under National Supercomputing Mission.*
  • Researchers have computationally designed a low contact resistance metal-semiconductor interface with 2D monolayers for next-generation transistors, which can boost device performance. *
  • Signalchip, an Indian Fabless semiconductor company has developed “Agumbe” series of baseband, modem and radio frequency (RF) chipsets for 5G/4G networks with integrated support for global navigation satellite systems including NavIC.
  • Citizens will be able to use the MyGov Helpdesk on WhatsApp to access the Digilocker service. This includes creating and authenticating their Digilocker account, downloading documents such as PAN card, driving license, vehicle registration certificate, among others, all on WhatsApp.
  • PARAM PORUL, a state-of the art Supercomputer at NIT Tiruchirappalli is inaugurated to facilitate computational research in various scientific domains such as Weather and Climate, Bioinformatics, Computational Chemistry, Molecular Dynamics, Material Sciences, Computational Fluid Dynamics etc.
  • Scientists have used Machine learning to develop a design map of alloys at the nanoscale which can help predict the match of pairs of metals that can form bimetallic nanoalloys.
Recent Announcements

17th Aug 2023: India Signs MoU with Trinidad and Tobago on sharing INDIA STACK

“It is vision of PM Narendra Modi to offer India Stack to countries across the globe especially those that have been left behind in their digitalisation efforts.”: MoS Rajeev Chandrasekhar

Ministry of Electronics & IT


03rd Aug 2023: IIT Madras BS (Electronic Systems) program is all set to power India’s growth in the Electronics Manufacturing Sector. IIT Madras launched this 4-year program to meet the fast-emerging demands of the indigenous electronics industry.

Special Service and Features


08th June 2023: Quantum Jump in the Export of Electronic Goods

Special Service and Features


03rd May 2023: India and Israel signed a MOU on Industrial Research and Development Cooperation with focus on several key technology areas

Ministry of Science & Technology


26th April 2023: Updated facts & figures under Recent Announcements in Electronics System sector: Aadhaar authentication transactions climb to 2.31 billion in March; Aadhaar enabled e-KYC jumps by 16 %.

Ministry of Electronics & IT


  • The Consumer Electronics and Appliances Industry in India is expected to become the fifth-largest in the world by 2025.*
  • Top 5 export destinations in April-November 2021 are: USA (18%), UAE (16.6%), China (7.6%), Netherland (4.5%) & Germany (4.2%).
  • Mobile phones, IT hardware (laptops, tablets), consumer electronics (TV and audio), industrial electronics and auto electronics are key exports in this sector.
  • India’s production of electronics is INR 640,810 crore in 2021-22 (USD 80 bn).*
  • 266x growth in wireless data consumption over last 8 years reaching 16 Gb in 2022.
  •  India’s domestic production has increased at a CAGR of 15% from $ 43 Bn in FY17 to $ 87 Bn in FY22.
  • The export of electronic goods from India has increased from $ 5 Bn in FY17 to $ 15 Bn in FY22, growing at a CAGR of 22%.
  • 96% reduction in data cost from INR 268 per GB in 2014 to INR 10 per GB in 2022.
Growth Drivers
  • An indigenous Onboard Driver Assistance and Warning System – ODAWS, Bus Signal Priority System and Common SMart iot Connectiv (CoSMiC) software have been launched under Intelligent Transportation System Endeavor for Indian Cities Phase-II initiative of Ministry of Electronics and Information Technology (MeitY).
  • There is a huge demand for electronic goods in the Middle-Eastern countries and in emerging markets such as North Africa and Latin America. This provides an export market for ‘Made in India’ electronic goods.
  • C-DAC transferred the technology of Power Quality Solution and Railways VCU solutions to industry partners to achieve the vision of 'Make in India' through more indigenisation of technology and taking it forward by the industry.*
  • MoU between Signal chip Innovations, MeitY and Centre for Development of Advanced Computing (C-DAC) for not only design and manufacture but also deployment and maintenance of 10 Lakh Integrated NavIC (Navigation with Indian Constellation) and GPS Receivers. 
  • An MoU was announced between Semiconductor Research Corporation (SRC) USA and IIT Bombay to focus on bringing together SRC's industry experts and India's R&D talent to create a compelling industry driven world-class R&D program.
  • MoU between Global Institute of Electrical and Electronics Engineers (IEEE India) and Centre for Development of Advanced Computing (C-DAC) was announced for skill and technical standards development in semiconductor electronics focusing on VLSI design and Electromagnetic interference (EMI)/ Electromagnetic compatibility (EMC).
  • MeitY has announced an MoU between Atal Community Innovation Center-Kalasalingam Innovation Foundation (ACIC-KIF) and Centre for Development of Advanced Computing (C-DAC) for collaborative R&D, Product development and Trainings in the areas of semiconductor technologies, Power electronics, Energy harvesting, Electric vehicles etc.
  • Shri Rajeev Chandrasekhar inaugurates five National Institute of Electronics and Information Technology (NIELIT) Centers in North East for skill enhancement of the educated youth in the region.
  • National Institute of Electronics and Information Technology (NIELIT) Centre Leh, Extension Centre Kargil and IT Enabled Incubation Centre for Handicraft and Handloom Sector is inaugurated at Leh for the development of the UT.
  • Zet Town India Pvt Ltd, a Zetwerk company, unveiled its new state-of-the-art manufacturing facility at Noida in Uttar Pradesh with the aim to produce 10 mn devices annually.
  • NICSI signs MoU with Delhi School of Management for R&D management and Consultancy in e-Governance.
  • Digital Infrastructure for Governance, Impact and Transformation (DIGIT) enabled by India Stack has been implemented in over 1000 cities resulting in impacton 180 Mn citizens. *
  • NIXI introduced Internet Exchanges in Durgapur and Bardhaman to improve quality of Internet and Broadband services in West Bengal and nearby regions.*
  • The Department of Consumer Affairs vide the Legal Metrology (Packaged Commodities), (Second Amendment) Rules 2022 has allowed the electronic products to declare certain mandatory declarations through the QR Code for a period of one year, if not declared in the package itself.*
  • Cabinet approves a project for saturation of 4G mobile services in uncovered villages at a total cost of INR 26,316 Cr.*
  • Government aims to provide 4G mobile services in 24,680 uncovered villages in remote and difficult areas. The project has a provision to include 20% additional villages on account of rehabilitation, new-settlements, withdrawal of services by existing operators etc.  In addition, 6,279 villages having only 2G/3G connectivity shall be upgraded to 4G.*
  • This vision of Atma Nirbhar Bharat in electronics & semiconductors was given further momentum with the approval of the Semicon India programme with a total outlay of INR 76,000 crore for the development of semiconductor and display manufacturing ecosystem by Government of India.*
FDI Policy
  • 100% Foreign Direct Investment (FDI) is allowed under the Automatic Route in the ESDM industry.*
  • For defence electronics, up to 100% FDI is allowed, subject to industrial license. Under the Automatic Route, up to 49% FDI is allowed. Above 49% is allowed under the Government Route on a case to case basis, wherever it is expected to result in access to modern and ’state-of-the-art’ technology in the country. *
  • The Government allows 100% FDI in medical devices via the Automatic Route. Investors are no longer required to take the Foreign Investment Promotion Board’s permission to acquire an existing company or set up a new manufacturing unit in the medical devices sector. The investor, however, will need to comply with the reporting requirements of the Reserve Bank of India (RBI) and comply with all other relevant Central and State laws and regulations. *
  • The cumulative FDI equity inflow in the Electronics industry is USD 4.13 bn during the period April 2000 to March 2023. *

Read more about Foreign Direct Investment Policy in India >

Sector Policy

Telecom Technology Development Fund Scheme*

  • Universal Service Obligation Fund (USOF) launches Telecom Technology Development Fund scheme with the aim to fund R&D in rural-specific communication technology applications and form synergies among academia, start-ups, research institutes, and the industry to build and develop the telecom ecosystem.

National Policy on Electronics *

The National Policy on Electronics (NPE) 2019 envisions to position India as a global hub for ESDM by encouraging and driving capabilities in the Country for developing core components, including chipsets and by creating an enabling environment for the industry to compete globally.

The NPE 2019 replaces the NPE 2012, which has successfully built the foundation for a competitive Indian ESDM value chain. The NPE 2019 targets to promote domestic manufacturing and export in the entire value chain of ESDM and achieve a turnover of USD 400 Bn by 2025.

For more details on the NPE 2019, please refer to NPE 2019.

Electronics Development Fund (EDF) *

This Scheme helps promote start-ups and innovation. The EDF is a fund of funds that invests in venture funds, which in turn invest in innovation ventures/ start-ups in electronics, nano-electronics and IT. The EDF will invest about INR 659 cr in 11 Daughter Funds which have a total targeted corpus of INR 5576 cr.  

Electronics Manufacturing Clusters (EMC) *

The Scheme, launched in 2012, encourages entities including State Governments to provide good quality infrastructure within a cluster. Under the Scheme, up to 50% of the project cost for greenfield EMC and 75% for brownfield EMC is given as a grant. 

Electronics Manufacturing Schemes 2020 *

To further strengthen the ESDM ecosystem with a complete value chain and position India as the global hub for ESDM, the following schemes have been notified by the Ministry of Electronics and Information Technology (MeitY):

  • Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS): SPECS has been notified to strengthen the value chain for electronics manufacturing in India with the target segment comprising of downstream value chain products such as electronic components, semiconductor/ display fabrication units, ATMP units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods. Under the scheme, 25% incentives will be provided on capital expenditure (on a reimbursement basis) in new units and expansion/ modernization/ diversification of existing units. The scheme will be open for applications for a period of 3 years from the date of notification. All investments made within 5 years from the date of acknowledgement will be eligible for receiving incentives under SPECS which has an outlay of about USD 440 Mn.
  • Modified Electronics Manufacturing Clusters Scheme (EMC 2.0): The scheme has been notified to support the creation of quality infrastructure with common facilities and amenities, including Ready Built Factory (RBF) sheds/ Plug and Play facilities. Under the scheme, financial assistance of 50% of the project cost will be provided to EMC projects subject to a ceiling of INR 70 Cr for every 100 acres of land while 75% of the project cost will be provided for Common Facility Centres (CFCs) subject to a ceiling of INR 70 Cr. The scheme will be open for applications for a period of 3 years from the date of notification and disbursement of funds to the approved projects will be done in a period of 5 years. EMC 2.0 scheme has an outlay of about USD 500 Mn.

Production-Linked Incentive Schemes *

  • Hon’ble PM, Shri Narendra Modi has approved PLI Scheme in  Electronics System Sector through the MeitY with a financial outlay of INR 5000 cr over a five-year period for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.
  • 16 applications were approved under the first round of the scheme (5 companies under Global Champions Category, 5 companies under Domestic Champions Category and 6 companies under the Electronic Components category) with an incentive outlay of INR 36,440 crore.
  • Additional employment generation during this period stands at around 22,000 jobs.

Scheme for setting up of Display Fabs in India

  • The scheme provides fiscal support to eligible applicants for setting up of Display Fabs which is aimed at attracting large investments for setting up TFT LCD / AMOLED based display fabrication facilities in the country.
  • The Scheme provides fiscal support of up to 50% of Project Cost subject to a ceiling of INR 12,000 crore per Fab.

Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India

  • The Scheme provides a fiscal support of 30% of the Capital Expenditure to the eligible applicants for setting up of Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fab and Semiconductor ATMP / OSAT facilities in India.

Design Linked Incentive (DLI) Scheme

  • The scheme offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design.
  • The scheme provides “Product Design Linked Incentive” of up to 50% of the eligible expenditure subject to a ceiling of INR 15 Crore per application and “Deployment Linked Incentive” of 6% to 4% of net sales turnover over 5 years subject to a ceiling of INR 30 Crore per application.

Scheme for setting up of Semiconductor Fabs in India

  • The scheme provides fiscal support to eligible applicants for setting up of Semiconductor Fabs which is aimed at attracting large investments for setting up semiconductor wafer fabrication facilities in the country. Following fiscal support has been approved under the scheme:
  1. 28nm or Lower - Up to 50% of the Project Cost
  2. Above 28 nm to 45nm - Up to 40% of the Project Cost
  3. Above 45 nm to 65nm - Up to 30% of the Project Cost


Explore Government policies/schemes in Electronic Systems sector >

Financial Support


The total budgetary allocation for FY 2022-23 towards the Ministry of Electronics and Information Technology is INR 14,300 cr.


Export incentives of 2-3% are available under the Merchandise Export from India Scheme (MEIS). Products such as air conditioning parts and compressors, refrigerating equipment compressors, fully automatic washing machines, colour televisions, and set top boxes for accessing files are included in the list of products that get export incentives.


To encourage filing of international patents, a scheme to Support International Patent Protection in Electronics & IT (SIP-EIT) has been commissioned. The Scheme provides financial support to Small and Medium Enterprises (SMEs) and tech start-ups by supporting international patent protection in electronics and IT.

Reimbursement is limited to a total of around USD 21,650 per invention or 50% of the total expenses incurred in filing and processing of patent application up to Grant, whichever is lesser.

Investment Opportunities
  • Mobile phone manufacturing *
  • Semi-conductor wafer fabrication manufacturing *
  • Light Emitting Diode (LED) manufacturing *
  • Wearable devices manufacturing *
  • Solar cells and modules manufacturing *
  • LED and Liquid Crystal Display (LCD) manufacturing *
  • Research, innovation and skill development support in emerging technology areas such as Augmented Reality (AR), Virtual Reality (VR), drones, robotics, additive manufacturing, etc*
  • Medical electronic devices manufacturing *
  • Research and development of automotive electronics and power electronics for mobility *


Explore projects to invest in Electronic Systems sector >

Sector Reports
  1. Year-End- Review of CSIR (Ministry of Science & Technology)– 2022
  2. Year End Review 2022: Ministry of Electronics and Information Technology (MeitY)
  3. Annual Report 2022-23 Ministry of Electronics and Information Technology (MEITY)
  4. Human Resource and Skill Requirements in the Electronics and IT Hardware Industry
  5. Globalise to Localise
Foreign Investors
  • Qualcomm (US)
  • Samsung (South Korea)
  • LG (South Korea)
  • GE (USA)
  • Bosch (Germany)
  • Amphenol (US)
  • Motherson Sumi system (Japan)
  • Nidec (Japan)
  • Magneti Marelli (Italy)
  • Continental (Germany)
  • Delphi (USA)
  • Mando Hella (South Korea)
  • Mitsubishi (Japan)
  • Harman (USA)
  • Perto (Brazil)
  • Giesecke and Deverient (Germany)
  • Haier (China)
  • Philips (Netherland)
  • Panasonic (Japan)
  • Huawei (China)
  1. "India’s Trillion-Dollar Digital Opportunity", Ministry of Electronics and Information Technology, https://meity.gov.in/writereaddata/files/india_trillion-dollar_digital_opportunity.pdf
  2. Report on India’s Trillion Dollar Digital Opportunity Released, Ministry of Electronics and Information Technology, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1565669
  3. Indian Tech Start-up Ecosystem 2018: Approaching Escape VelocityNASSCOM, https://www.nasscom.in/knowledge-center/publications/indian-tech-start-ecosystem-2018-approaching-escape-velocity
  4. Indian Tech Start-up Ecosystem: Leading Tech In The 20sNASSCOM, https://www.nasscom.in/knowledge-center/publications/indian-tech-start-ecosystem-leading-tech-20s
  5. Report on India’s Trillion Dollar Digital Opportunity Released, Ministry of Electronics and Information Technology, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1565669
  6. Factsheet on FDI - April 2000 to March 2022Department for Promotion of Industry and Internal Trade, https://dpiit.gov.in/sites/default/files/FDI_Factsheet_March_2022_23May2022.pdf
  7. Report on India’s Trillion Dollar Digital Opportunity Released, Ministry of Electronics and Information Technology, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1565669
  8. "Session 5:- Promoting “Make in India” through Policy guidelines & Communication Broadband Equipment’s by use of hackathon", Ministry of Home Affairs, https://dcpw.gov.in/session5.php
  9. FAQs on Foreign Direct Investment & Electronic System Design & Manufacturing (ESDM), Ministry of Electronics and Information Technology,  https://meity.gov.in/writereaddata/files/FAQ_FDI_ESDM.pdf
  10. FAQs on Foreign Direct Investment & Electronic System Design & Manufacturing (ESDM), Ministry of Electronics and Information Technology,  https://meity.gov.in/writereaddata/files/FAQ_FDI_ESDM.pdf
  11. FAQs on Foreign Direct Investment & Electronic System Design & Manufacturing (ESDM), Ministry of Electronics and Information Technology,   https://meity.gov.in/writereaddata/files/FAQ_FDI_ESDM.pdf
  12. Cabinet approves the proposal of National Policy on Electronics 2019, PIB, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1565285
  13. Annual Report 2019-20, Ministry of Electronics and Information Technology, https://www.meity.gov.in/writereaddata/files/Annual_Report_2019%E2%80%9320.pdf
  14. Electronics Manufacturing Schemes (2020), Ministry of Electronics and Information Technology, https://www.meity.gov.in/writereaddata/files/Presentation-Electronics_Manufacturing_Schemes.pdf
  15. National Policy on Electronics 2019, Ministry of Electronics and Information Technology, https://www.meity.gov.in/writereaddata/files/eGazette_Notification_NPE%202019_dated%2025022019.pdf
  16. Electronic System Design & Manufacturing (ESDM) – Sector Profile", Government of Gujarat, http://vibrantgujarat.com/writereaddata/images/pdf/electronic-sytem-design-and-manufacturing-sector.pdf
  17. “India Budget”, Ministry of Electronics and Information Technology, https://www.indiabudget.gov.in/doc/eb/sbe24.pdf
  18. Support for International Patent Protection in Electronics and Information Technology, Ministry of Electronics and Information Technology, http://www.ict-ipr.in/sipeit/SIPEITForm
  19. “India Budget”, Ministry of Electronics and Information Technology, https://www.indiabudget.gov.in/doc/eb/sbe24.pdf
  20. “India Budget”, Ministry of Electronics and Information Technology, https://www.indiabudget.gov.in/doc/eb/sbe24.pdf
  21. PIB Release,  https://www.pib.gov.in/PressReleasePage.aspx?PRID=1710134

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