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

Second-largest mobile phone producer in the world (from just 2 mobile phone factories in 2014)

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

Estimated to reach over 900 million internet subscribers by 2025

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

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) Scheme in Electronics and Technology Products for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.

  • INR 5,000 cr

    Scheme Outlay

Ministry

Products

CONTACT USAtmanirbhar Bharat Abhiyaan

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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.

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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.

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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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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.

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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.

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