The Electronics System Design & Manufacturing (ESDM) sector plays a vital role in the government’s goal of generating US$ 1 trillion of economic value from the digital economy by 2025. With various government initiatives aiming to boost domestic manufacturing, India has already started witnessing initial movement with increased production and assembly activities across products such as mobile phones and other consumer electronics.
The ESDM industry includes subsectors such as electronic products, electronic components, semiconductor design, and electronics manufacture. Most popular products among consumers include mobile phones, flat panel display televisions, and tablets.
India’s electronic system design and manufacturing (ESDM) industry is expected to reach $400 billion by 2022. By 2020, total production of electronics hardware in the country is expected to reach $104 billion. Communication equipment comprises 31% of the industry, followed by consumer electronics at 23%.
The ESDM industry includes subsectors such as electronic products, electronic components, semiconductor design, and electronics manufacture. Most popular products among consumers include mobile phones, flat panel display televisions, and tablets.
Despite bright predictions, the country’s ESDM sector is still small and is not able to meet the demand of the Indian consumers, projected to reach $400 billion by 2020. To fill this gap, the country imports $300 billion of electronics. To encourage the growth of the domestic industry, the Indian government implemented the National Policy on Electronics. This policy aims for revenues of $400 billion by 2020 through $100 billion of investments and employment of as many as 28 million workers. The plan also provides for foreign manufacturers opportunities to enter the sector.
