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.
- India’s domestic production is expected to reach $ 300 Bn by FY26
- 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.
- The export of electronic goods from India has increased from $5 Bn in FY17 to $24 Bn in FY23, growing at a CAGR of 30%
- 96% reduction in data cost from INR 268 per GB in 2014 to INR 10 per GB in 2022.
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
2nd largest mobile manufacturer & smartphone market 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
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Domestic production of electronics to reach $300 Bn by FY26
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.
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
Investment Opportunities in Electronic Systems
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Electronic System Design and Manufacturing
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