Bangalore. January 23, 2013 – In the 6th annual report on the Indian Electronics, System Design and Manufacturing (ESDM) and Semiconductor industry released by the The India Semiconductor Association (ISA) on Tuesday, the prognosis is sound, if not spectacular.
The report prepared by Frost&Sullivan says the industry can expect to grow at around 9.9% CAGR -- from $ 64.6 billion in 2011 to $ 94.2 billion in 2015.
The study found that reliance on imports continues to be high, with 65% of the demand for electronics products being met by imports. In the absence of policy interventions, imports are likely to grow from $ 28 billion in 2011 to USD 42 billion in 2015. High Value Added Manufacturing may decline to 6.7% in 2015 resulting in a cumulative opportunity loss of $ 200 Billion during 2011-2015. The total Semiconductor Market is expected to grow from $ 6.03 Billion in 2011 to $ 9.7 Billion by 2015. Achieving 50% Total Domestic Manufacturing by 2015 will create additional direct employment of 200,000.
PVG Menon, President, India Semiconductor Association (ISA) said,“The next few years will be crucial for the growth and development of the Indian ESDM industry. The ESDM Industry must now focus on the number of areas where India can increase self-reliance and both create and leverage intellectual property assets and the high design capability found in India to develop unique global products for and from India. Examples are areas like computing devices and smart electronics, aerospace and defence and medical electronics.”
The ISA is also working actively to encourage entrepreneurship and innovation in the ESDM sector in India, and believes that these will be crucial to achieve the vision of building the $ 400 Billion ESDM industry in India.
Officials indicated on the sideline of the ESDM study release that ISA was hopeful of some good news on the indegenous silicon/solar fab front within the next few months... this has been a hardy annual almost as long as ISA has been bringing out these studies.
ISA is the premier trade body representing the Indian Electronic System Design and Manufacturing ESDM industry and has represented it since 2005. It has over 160 members –both domestic and multinational enterprises.