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

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

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

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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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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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