The world’s fastest-growing industry, Electronics System Design and Manufacturing (ESDM) continues to transform lives, businesses, and economies across the globe. India witnessed a substantial spike in demand for electronic products in the last few years; this is mainly attributed to India’s position as second-largest mobile phone manufacturer worldwide and surge in internet penetration rate. The Government of India attributes high priority to electronics hardware manufacturing, as it is one of the crucial pillars of Make in India, Digital India and Start-up India programmes.
Technology transitions such as the rollout of 5G networks and IoT are driving the accelerated adoption of electronics products. Initiatives such as ‘Digital India’ and ‘Smart City’ projects have raised the demand for IoT in the electronics devices market and will undoubtedly usher in a new era for electronic products.
India is expected to have a digital economy of $ 1 Tn by 2025
One of the largest electronic devices industries in the world anticipated reaching $ 300 Bn by FY 2025-26
India’s exports is set to increase rapidly from $ 10 Bn in FY21 to $ 120 Bn in FY26.
India’s domestic production in electronics has increased $ 29 Bn in 2014-15 to $ 67 Bn in 2020-21.
Production of mobile handsets is further slated to increase in value from $ 30 Mn in FY 21 to $ 126 Mn in FY 26.
India produces roughly 10 mobile phones per second which amounts to ~$ 930 worth of production every second.
India’s semiconductor market is expected to increase from ~$ 15 Bn in FY20 to ~$ 110 Bn in FY30, growing at a CAGR of 22%.
100% FDI is allowed under the automatic route. In the case of electronics items for defence, FDI up to 49% is allowed under automatic route and beyond 49% through the government approval.
In order to position India as a global hub for ESDM, the Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing, Production Linked Incentive Scheme (PLI) for IT Hardware, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and Modified Electronics Manufacturing Clusters Scheme (EMC 2.0) have been notified. Refer to the Schemes for Electronics Systems Manufacturing microsite for further details.
Additionally, the Semicon India Program with an incentive outlay of ~$ 10 Bn was launched with the vision to develop a sustainable semiconductor and display ecosystem in the country. This program will establish India as global hub for semiconductor and display manufacturing, promote self-reliance, strengthen resilience in global supply chains, and pave the way for India’s technological leadership in the industry.