Snapshot

Amplifying Growth

The world’s fastest-growing industry, Electronics System Design and Manufacturing (ESDM) continues to transform lives, businesses, and economies across the globe. India is expected to become a $1 Tn digital economy by FY26. Currently, the electronics market in India is valued at $155 Bn with domestic production accounting for 65%.

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.

  • At present, India’s domestic production has increased at a CAGR of 13% from $49 Bn in FY17 to $101 Bn in FY23.
  • The country's electronics export is expected to reach $120 Bn by FY26.
  • During Apr-Feb 2024, electronic goods exports were recorded at $25.60 Bn as compared to $20.69 Bn during Apr-Feb 2023, registering a growth of 23.72%.
  • India ranks 60 in Network Readiness Index 2023, a jump of 7 ranks from 67 in 2021.
  • 96% reduction in data cost from INR 269 per GB in 2014 to INR 10.1 per GB in 2023.

100% FDI is allowed under the automatic route. In the case of defence electronics, FDI up to 49% is allowed through automatic route and beyond 49% requires government approval.

For further details, please refer FDI Policy

  • $ Tn

    Digital Economy by FY26

  • $ Bn

    Indian Electronics Market

  • $ Bn

    Fiscal incentives for ESDM & Allied Sectors

Explore Related Sub Sectors

2nd largest mobile manufacturer & internet users in the world

Over 2x increase in domestic production of electronics in last 6 years

19% CAGR in average monthly data traffic per user from 9.5 GB in FY18 to 19.5 GB in FY22

Industry Scenario

Electronic exports have become the 6th largest export commodity group as of Mar 2023

With rising per capita disposable income and private consumption, India has emerged as one of the largest markets for electronic products in the world.

Domestic production of electronics is valued at $101 Bn in FY23 and is segmented (basis FY22 data) as Mobile Phones (43%), IT Hardware (5%), Consumer Electronics (12%), Strategic Electronics (5%), Industrial Electronics (12%), Wearables & Hearables (0.3%), PCBA (0.7), Auto Electronics (8%), LED Lighting (3%) and Electronic Components (11%).

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 released. Refer to the Schemes for Electronics Systems Manufacturing microsite on the Invest India website 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. Refer to the Semiconductors sub-sector page on the Invest India website for further details.

GROWTH DRIVERS

  • Semicon India Program

    Schemes for setting up Semiconductor Fabs, Display Fabs, Compound Semiconductors, OSAT / ATMP, Design Linked Incentive (DLI).

  • Schemes for Promotion of Electronics Manufacturing

    Production Linked Incentive (PLI) Schemes for Large Scale Electronics Manufacturing and IT Hardware, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), Modified Electronics Manufacturing Clusters Scheme (EMC 2.0).

  • Large Consumer Base

    1.3 Bn consumers engaged in rapid urbanization and digitization with increasing penetration of electronic products.

  • Third largest startup ecosystem

  • New innovations, designs, and technology propelling digitization within India

  • Rollout of 5G, and industrial use of Internet of Things (IoT) technology

  • “Make in India” and “Digital India” initiatives along with Government’s impetus on EoDB

  • Robust Research & Development (R&D) Ecosystem

arrowarrow

Production Linked Incentive (PLI) Scheme

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Schemes for Large Scale Electronics Manufacturing and IT Hardware for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Aatmanirbhar Bharat. For enhancing India’s manufacturing capabilities and exports, the PLIs for Large Scale Electronics Manufacturing and IT Hardware have been launched. This will ensure the creation of globally competitive Mobile Phones, IT Hardware products and components. This will cater to rise in global demand while supporting the creation of a robust electronics & components ecosystem in the country.

  • INR 38,645 Cr

    PLI for Large Scale Electronics Manufacturing

  • INR 17,000 Cr

    PLI for IT Hardware

Industrial Land Bank Portal

GIS - based map displaying available infrastructure for setting up business operations in the state.

Investible Projects

Investment Opportunities in Electronic Systems

    Major Investors

    Latest In Electronic Systems

    Memorandum of Understanding May 28, 2024

    Society for Applied Microwave Electronics Engineering & Research (SAMEER) exchanges MoU on MRI and technology…

    Read Now

    Memorandum of Understanding

    Society for Applied Microwave Electronics…

    Press Release

    Launch of Intelligent Transportation System …

    Press Release

    Year End Review 2023: Ministry of…

    Press Release

    India-Korea Electronic Origin Data Exchange…

    Brochure

    Electronic System Design and Manufacturing

    FAQs

    Frequently
    Asked Questions

    What is the duration of the SPECS scheme?

    SPECS shall be open for receiving applications for a period of 3 (three) years from the date of notification. Since the scheme was notified on 01.04.2020, applications under the scheme, complete in all respects, shall be received upto 31.03.2023. No application received after three years from the date of notification of the Scheme shall be considered for approval.

    Was it helpful?

    Will capital expenditure made before the date of application also be considered for determining eligible capital expenditure under SPECS?

    Capital expenditure made on or after the date of acknowledgement of an application and within 5 years of date of acknowledgement of such application shall only be considered for determining eligible capital expenditure under the Scheme. Capital expenditure made before the date of acknowledgement of application under the Scheme shall not be considered for calculation of eligible capital expenditure under the Scheme. However, Capital expenditure made before the date of acknowledgement of application, but on or after the date of application, on the approved list of capital items, shall be considered for calculation of threshold.

    Was it helpful?

    Will the expenditure incurred on Land and Building be considered towards determining eligible capital expenditure under SPECS?

    No, the expenditure incurred on land and building (including factory building / construction) required for the project / unit is not covered and, therefore, will not be considered towards determining eligible capital expenditure under the Scheme.

    Was it helpful?

    Can an applicant make more than one application under SPECS?

    There is no restriction on any applicant from making multiple applications under the Scheme. A Project / Unit proposed under the Scheme may include manufacturing facilities at one or more proposed locations.

    Was it helpful?

    Is the total size of Ready Built Factory (RBF) sheds limited to 10% as under the EMC 2.0 scheme?

    10% of the total saleable / leasable land area is the minimum requirement. The Project Implementation Agency may decide to earmark additional area for Ready Built Factory sheds depending upon the market / industry requirements.

    Was it helpful?

    VIEW ALL