Bangalore, February 3 2015: The Indian Electronic System Design and Manufacturing market is expected to grow at more than twice the rate of global ESDM market between 2010-15.
From $59.0 billion in 2010 ($75.6 billion in 2013), the industry is expected to grow at a CAGR of 9.9% from 2010 till 2015 to reach $94.2 billion.
This growth is led by increasing appetite for high-end technology devices complemented by increasing disposable income in the country and continuous price erosion in electronic products, said Ashok Chandak,Chairman of the India Electronics and Semiconductor Association.
He was addressing the media on the sidelines of the annual IESA Vision summit here yesterday.
Apart from the huge consumer demand, there is a robust demand for ESDM from Government of India which announced various initiatives, such as Smart Cities and Digital India which are expected to increase the opportunities for development and consumption of electronic products in the country.
Under the Modified Special Incentive Package Scheme(M-SIPS), 28 proposals worth $ 1 billion out of 54 proposals totalling $ 3 billion have been approved by government,Chandak added.
Madhya Pradesh leads the nation with thet two new Electronic Manufacturing Clusters in Bhopalk and Jabalpur, the first of some 288 such clusters in 10 states that have been planned.
The Association actively worked on the policy framework of the ElectronicDevelopment Fund, explained IESA President M N Vidyashankar. The Fund to promote IP, Innovation and R&D, product commercialization in ESDM, nano-electronics and IT comprises of Daughter Funds of size of $ 20-100 Million, with government's share in each Fund : 25%-75%; with the balance from private sector and financial institutions. “The Indian industry is best suited to create a strong partner network focused on ESDM to improve the component ecosystem. With aggressive engagement from government, industry bodies and corporates, we are confident the ESDM environment will soon witness manufacturing to gather pace. The involvement of state governments has provided the required momentum with special manufacturing zones for electronics manufacturing created in every state, utilizing its edge on natural resources, infrastructure in the overall purpose of ensuring that India becomes an ESDM powerhouse.”
Added Omkar Rai, Director General, Software Technology Parks of India (STPI: We are gradually inching towards building India as a manufacturing ready nation for the electronics segment, with a robust infrastructure comprising of entrepreneur parks, incubation centres, component ecosystem etc. We admire the intent and effort put in by IESA over the years in reaching out to the world for design-led manufacturing in India and hence, today we are discussing the possible ways to ensure India’s domination in design-led electronics manufacturing. It’s no more a dream, electronics manufacturing is now a reality for India."
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