Amplifying growth

The Indian Electronics industry is being driven by macro factors such as the growing middle-class population and rising disposable income. In addition, declining electronics prices and adoption of high-end technology devices is leading to an uptick in consumption of electronics devices.

Furthermore, technology transitions such as the rollout of 4G/ LTE 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 market. Similarly, the digital banking sector like wallet players and payment banks will raise demand for POS and VSAT-enabled mobile ATMs, which will further give a fillip to the growing industry.

  • One of the largest electronics markets in the world anticipated reaching $ 400 bn by 2025
  • The Consumer Electronics and Appliances Industry in India is expected to become the fifth-largest in the world by 2025.
  • The electronics market is projected to grow at a CAGR of 17% during 2014-2020
  • Overall production of consumer electronics is expected to reach $ 29 billion by 2020 

100% FDI is allowed under the automatic route.

In case of electronics items for defence, FDI up to 49% is allowed under automatic route and beyond 49% through the government approval.

For further details, please refer FDI Policy

  • %

    Sector growth (annual)

  • %

    Mobile manufacturing growth (annual)

  • %

    Domestic manufacturing growth (annual)

  • %

    Hardware market growth (annual)


The gaming market in India to reach $ 801 mn by 2022


Indian IoT market to reach $ 9 bn by 2020


Fastest growing smartphone market in Asia Pacific

Industry Scenario

Electronics market in India is projected to reach US$228 bn by 2020 from over $ 100 bn in 2016-17

The electronics products segment contributed 82% to the overall market in 2015, while the rest comprised electronic components.

The Electronic Products industry in India was valued at $ 61.8 bn in 2015, which is further segmented as follows:

  • Mobile devices (27%)
  • Consumer electronics (18%)
  • Industrial Electronics (15%)
  • IT/Office automation (10%)
  • Automotive electronics (8%)
  • Telecom (8%)
  • Strategic (Aerospace and Defence) (7%)
  • Medical devices (4%)
  • Others (3%)

The Electronic component industry was valued at $ 13.5 bn in 2015; of which Electro-mechanical segment had the highest share at 30%. Passive and active segments handled 27% and 22% share, respectively, while the remaining market of 20% was handled by the Others segment. Nearly 70-80% of the electronic components market is imports-driven.

The government has placed electronics manufacturing on high priority with a major focus on initiatives such as Digital India, Make in India and supportive FDI policies to bolster electronic manufacturing. As a result, domestic production is expected to grow at a CAGR of 27% during 2016-2020 to reach $ 104 billion in 2020, as compared to the CAGR of 9.6% during 2010-2016.


Growth Drivers

  • Digital media

    Digital wallets, Wi-Fi connectivity: IoT, routers, Machine to Machine devices

  • Smart cities

    Goal to build 100 smart cities by 2020

  • Government cloud initiative

    “Meghraj” – cloud adoption for e-governance services

  • National Knowledge Network (NKN)

    The government aims to connect educational institutes and labs

  • Ultra mega solar project

    Solar power driven pump sets & water pumping stations

Major Investors

Data On Map

Electronic Business in India

Latest In Electronic Systems

BrochureFeb 25, 2020

India Investment Atlas

View Now


India Investment Atlas


Setting up Business in India


Electronic Systems Sector


India Budget 2020: Tax and Sector Highlights


Enablers for Establishing Globally…


Asked Questions

What is the M-SIPS scheme?

To offset disability and attract investments in Electronic manufacturing, Modified Special Incentive Package Scheme (M-SIPS) was notified on 27 July 2012 to offer incentives to certain verticals in the sector. The scheme was initially opened for 3 years till 26 July 2015 but was later extended up to 26 July 2020 post amendments dated 3 August 2015.

What are the funding options available for ESDM in India?

We would like to highlight the Modified Special Incentives Package Scheme (M-SIPS) wherein reimbursement of capex (20% for SEZs and 25% for non-SEZs) is provided encourage investments into the sector. You can get more details on applying for the scheme at the following link: . As part of this scheme, 25% capital expenditure for expansion/ modernization and diversification of existing facility is also reimbursed. You can get more details on applying for the scheme at the following link.

Further, you can also refer to various funding alternatives available at the SIDBI website by clicking on the following link. 

In addition to this, please note that the Government has recently launched a debt fund called SIDBI Make in India Loan for Enterprises (SMILE), to provide soft term loans and loans in the nature of quasi-equity to MSMEs to meet debt-to-equity norms and pursue growth opportunities in existing MSMEs.
Further details are available at the link.


Are there any incentives or schemes for electronics system design and manufacturing sector unit?

Yes, Department of Electronics and Information Technology has launched the following schemes to promote domestic manufacturing of electronics items:

  1. Under the Modified Special Incentive Package Scheme (M-SIPS), 25% of Capex is eligible for subsidy (20% for units in Special Economic Zones) for all investments made in manufacturing of ESDM products. 
  2. Production subsidy @10% of production turnover (ex-factory) in select high-tech units such as fabrication and ATMP of analog/mixed signal semiconductor chips, power semiconductors, LEDs etc.
  3. Preferential Market Access (PMA)- Preference to domestic manufacturers in Government procurement to promote domestic manufacturing in the country. 
  4. Specified items must meet the specified safety standards under the Compulsory Registration Order (CRO) which has been brought into force from January 3, 2014. The CRO provides a framework to add other electronic items under this regime, thereby providing a quality barrier for unsafe and sub-standard electronic goods.
  5. For common facilities to be used by a set of units as part of a supply chain or in any other form of a cluster, assistance @ 50% subject to a ceiling of $ 8 million is available for common facilities. Such common facilities could include testing facilities, training facilities, social infrastructure, as also up gradation of hard infrastructure including supply of water, power, roads and other logistics. 

  6. Under the skill development scheme, 75-100% of the training fee is reimbursed for any specialized skills that may be required for prospective employees in India (training provided in any training facility recognized by Electronics Sector Skills Council)
  7. A scheme to support 3000 additional PhD (1500 in ESDM and 1500 in IT/ITES) was approved in 2014. Out of 1500 additional PhDs in ESDM, 500 are would be full time and 1000 would be part time. In addition, 100 PhDs (full-time) are to be supported by industry/State Government as a part of this scheme.

Please refer link for details on incentives.

What is Electronics Development Fund Policy?

Electronics Development Fund Policy provides a framework to set up an Electronics Development Fund (EDF) as a Fund of Funds which will foster R&D and innovation in technology sectors like electronics, IT and nano-electronics. EDF will support Venture Funds and Angel Funds, which will be professionally managed and are dedicated to these sectors.

What are the objectives of the national policy on electronics?

Government of India has notified the national policy on electronics in 2012. Some of its main
objectives include:
1) Achieve Net Zero Import by 2020.
2) Achieve a turnover of $ 400 billion by 2020 with investments of $ 100 billion.
3) Generating 28 million jobs.
4) Build strong supply chain of raw materials, parts and electronic components.


Invest India Timeline


Team India Blogs
Authored By:
Kanika Verma

Disclaimer: All views and opinions that may be expressed in the posts on this page as well as post emanating from this page are solely of the individual in his/her personal capacity