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. The global electronics market is estimated to be over $2 tn. India’s share in global electronics manufacturing has grown from 1.3% in 2012 to 3% in 2018.

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 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 electronics markets in the world anticipated reaching $400 bn by 2025
  • India’s ESDM sector is expected to generate $100 - 130 bn in economic value by 2025 

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

  • $ bn

    Indian Electronics Market

  • %

    Contribution to GDP

  • $ bn

    Exports in 2018-19

  • mn

    Direct and indirect employment

C

Second-largest manufacturer of mobile phones in the world in 2018

A

One of the top 3 global economies in terms of number of digital consumers

B

Estimated to reach over 900 million internet subscribers by 2025

Electronic Systems Information Kit
Electronic Systems Information Kit
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Industry Scenario

Domestic electronics market in India to reach $400 bn by 2025

With per capita disposable income and private consumption having doubled in the past 7 years, India has emerged as one of the largest markets for electronic products in the world.

The electronics market valued at $120 bn in 2018-19 is segmented as Mobile Phones (24%), Consumer Electronics (22%), Strategic Electronics (12%), Computer Hardware (7%), LEDs (2%) and Industrial Electronics (34%) comprising of Auto, Medical and other industrial electronic products.

  • Over 2x growth in domestic electronics production within 4 years; From $29 bn (2014) to $70 bn (2018)
  • Over 8x growth in domestic production of mobile devices.
  • Domestic Electronic Components market in India for 2019 is $20.8 bn (excluding imported PCB-Assemblies)
  • Digital Transactions per capita per annum have increased ~10x in 5 years.
  • India is a global R&D destination, with 1140+ R&D Centers of MNCs in India employing 900,000+ professionals

In order to position India as a global hub for Electronics System Design and Manufacturing (ESDM), the Production Linked Incentive Scheme (PLI), 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 Manufacturing microsite for further details.

GROWTH DRIVERS

  • New Schemes for Promotion of Electronics Manufacturing

    Production Linked Incentive Scheme (PLI), Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and Modified Electronics Manufacturing Clusters Scheme (EMC 2.0)

  • Large Consumer Base

    1.2 billion 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

Industrial Information System (IIS) Portal

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

Investible Projects

Investment Opportunities in Electronic Systems

  • Projects

  • Opportunity

    $

  • Promoters

  • District

  • Private Projects

  • Govt. Projects

Major Investors

Data On Map

ESDM landscape in India

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FAQ

Frequently
Asked Questions

What is the period for making an application under the PLI scheme?

In accordance with Para 6.1 of the Scheme, the Application Window shall be 4 months from the date of notification of the Scheme. Since the notification was published on 01.04.2020, applications under the Scheme shall be received upto 31.07.2020.

Can specified electronic components eligible under the Scheme be manufactured for any industry or application?

The items listed under the Target Segment, ‘Specified Electronic Components’ are agnostic to end-use or application and any company proposing to manufacture the items listed under the Specified Electronic Components (refer Annexure 1 of the PLI Guidelines) is eligible to apply under PLI Scheme subject to other eligibility and qualification criteria mentioned in the scheme notification and PLI guidelines.

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.

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.

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.

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