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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 electronic devices market is estimated to be $ 2.9 Tn in 2020. India’s share in the global electronic systems manufacturing industry has grown from 1.3% in 2012 to 3.6% in 2019.
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.
For further details, please refer FDI Policy
- $ bn
Indian Electronics Market
- %
Contribution to GDP
- $ bn
Exports in 2020-21.
- mn
Direct & Indirect Employment (2019-20)
Explore Related Sub Sectors
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2nd largest mobile manufacturer in the world
2.3x increase in domestic production from FY15 to FY21
164x growth in data consumption in the last 7 years
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
Domestic electronic devices market in India to reach $ 300 Bn by FY26
With per capita disposable income and private consumption having doubled between FY12 and FY21, India has emerged as one of the largest markets for electronic products in the world.
The electronic devices industry valued at USD 118 bn in 2019-20 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 2.3X growth in domestic electronics production in 6 years; From USD 29 Bn (FY15) to USD 67 Bn (FY21)
- Over 5x growth in production of mobile phones in 5 years; from 60 mn units (FY15) to ~300 mn units (FY21)
- 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
- The Average Index of Industrial Production of computer, electronic and optical products in the FY 2021-22 is 104.0 and has grown by 12.7percent.
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 ~USD 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. Further details can be found here
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
1.2 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
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 – Atmanirbhar Bharat.
INR 40,951 cr
PLI for Large Scale Electronics Manufacturing
INR 7,325 cr
PLI for IT Hardware
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up business operations in the state.
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