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ESDM market to be Rs.5 lakh crore by 2015

Posted: 23 Jan 2013     Print Version  Bookmark and Share

Keywords:ESDM  electronics products  domestic ecosystem  semiconductor 

The Indian electronics, system design manufacturing (ESDM) industry is growing at 9.9 per cent CAGR and expected to reach Rs.5.15 lakh crore ($94.2 billion) in 2015.

A report by the Indian Semiconductors Association and Frost and Sullivan on the Indian ESDM market (2011-2015) estimates that 65 per cent of the demand for electronics products is being met by imports.

"In the absence of policy interventions, imports are likely to grow from Rs.1.53 lakh crore ($28 billion) in 2011 to Rs.2.30 lakh crore ($42 billion) in 2015," the report said.

"Continuing reliance on imports is impeding growth of domestic manufacturing, which in turn is a major hurdle to the creation of a viable domestic ecosystem. The high cost of developing products including duties, taxation, capital and infrastructure are leading to a slow pace of investment in this sector."

ISA

ISA-F&S Report: Indian ESDM Industry

According to the report, high value added manufacturing is expected to decline to 6.7 per cent in 2015 resulting in a cumulative opportunity loss of Rs.10.93 lakh crore ($200 billion) during 2011-2015.

ISA Chairman Satya Gupta said, "Growth rate of 9.9 per cent for the Indian ESDM industry is fantastic considering a tough global economic environment. With growing market demand, world class talent and favourable government policies, it is the time for India to seize the opportunity of Rs.5.15 lakh crore ($94.2 billion) market through innovative domestic product development and value added manufacturing—rather than relying on imports and low value add screw driver assembly."

"The industry has to achieve 50 per cent of the demand for high impact products by local high value added manufacturing from current 9 per cent." the report highlighted.

Also, it stressed upon establishment of 10 ESDM innovation centres across the country where electronic product ideas can be taken to prototype and end product.

"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," added PVG Menon, President, India Semiconductor Association (ISA).

The ESDM industry in India comprises of electronic products, electronic components, semiconductor design services, and electronics manufacturing services (EMS), with the first two representing products, while the others highlight the manufacturing services and design services opportunities in the market.

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