Electronics System Design & Manufacturing (ESDM) Industry Analysis

India is committed to reach US$ 300 billion worth of electronics manufacturing and exports by 2025-26.

Advantage India

Robust
Demand

* India has strong design and R&D capabilities in auto electronics and industrial economics. India is the second-largest manufacturer of mobile phones in the world and will be the fifth-largest consumer of electronic products by 2025.

* In FY23, the exports of electronic goods were recorded at US$ 23.57 billion as compared to US$ 15.66 billion during FY22, registering a growth of 50.52%.

Competitive
Advantage

* India committed to reach US$ 300 billion worth of electronics manufacturing and exports of US$ 120 billion by 2025-26.

* India is home to considerable talent for electronic chip design and embedded software.

Policy
support

* The production-linked incentive (PLI) schemes will provide companies opportunities to establish manufacturing plants in India.

* Major Government initiatives such as ‘Digital India’, ‘Make in India’ and supportive policies including favorable FDI Policy for electronics manufacturing have simplified the process of setting up manufacturing units in India.

Increasing
Investments

* In March 2024, the Cabinet approved a massive US$ 15.2 billion (Rs. 1.26 trillion) investment in three semiconductor plants, signifying India's technological progress.

* India and Taiwan plans a US$ 7.5 billion chip plant deal, potentially boosting India’s semiconductor manufacturing with anticipated tariff reductions on components.

Last updated: Feb, 2024

ESDM Clusters

  • Madhya Pradesh
  • Andhra Pradesh
  • Punjab
  • Kerala
  • Tamil Nadu
  • Uttar Pradesh
ESDM India

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