The industry opportunity in Electronics
As per latest assessment of National Investment Promotion & Facilitation Agency of India, the country’s Domestic electronics market is likely 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 $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. Mobile phones are leading this pack.
Over 2.5X growth in domestic electronics production in 5 years; From $29 bn (2014) to $75.7 bn (2019-2020). Still 3rd largest import segment.
Over 5X growth in production of mobile phones in 5 years; from 60 Mn units (2014-15) to 330 Mn units (2019-20).
Domestic Electronic Components market in India for 2019 is $20.8 bn (excluding imported PCB-Assemblies)
To position India as a global hub for Electronics System Design and Manufacturing (ESDM), the Government has announced various schemes:
Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing, Production Linked Incentive Scheme (PLI) for IT Hardware: 20 large companies have signed up for Electronics Manufacturing including Samsung, Foxconn, Wistron, Dixon, VVDN, Lava, etc. expecting an additional job creation of 8 lacs over next 5 years.
Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS): This has been done to develop electronic component eco-system in India. Large component companies like Jabil, Samsung Display, Salcomp, Sterlite Technologies etc have signed up for this scheme expecting an additional job creation of around 6 lacs over next 5 years.
Modified Electronics Manufacturing Clusters Scheme (EMC 2.0): Like Noida in North, Sriperumbudur, Sri City & Bengaluru in South. Government is promoting multiple EMCs and has allocated approximately 4000 Crores to develop approximately 10 EMCs across India. This will lead to additional job creation of 10 lacs over next 8 years.
These schemes cumulatively will lead to job creation of almost 24 lacs over next 5 to 8 years in electronics manufacturing sector. This will be coupled by Smart city mission which will create multiple opportunities in service jobs roles.
For more details visit: https://www.investindia.gov.in/sector/electronic-systems