Electronics Industry in India

250290

340

390

460

540

105130

160200

240

300

2020 2021 2022 2023 2024 2025

Electronics Market Size (USD billion )

Electronics Production (USD billion )

Snapshot

Global Market Share

In FY2019, India’s Electronics production represented only 3.3% of the global market

Domestic Production

In FY2019, India’s Electronics production was 40% of the Electronics Market

Contribution to Digital Economy

Electronics Production market will contribute USD 300 bn (30%) to Digital Economy by FY2025

Electronics Industry- Market Overview

Source: IESA ESDM Report

Electronics System Market

YOUR TITLE 02

Electronics System market is expected .to

grow at 15% CAGR

Electronics Design market is expected to

grow at 20% CAGR

YOUR TITLE 04

ESDM market is expected to reach USD 220 bn by FY2025 and grow at 16% CAGR.

105 120 140 160 190 22080 90 105 118

140160

25 3035

4250

60

FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

Electronics Design Market (USD million )Electronics System Market (USD billion )Electronics Systems Design Market (USD billion )

Electronics Industry- Market Segmentation

Electronics Design Market

ESDM Market

80 90105 118

140160

2020 2021 2022 2023 2024 2025

Electronics System Market (USD billion )

24 30

35 42

50 60

2020 2021 2022 2023 2024 2025

Electronics Design Market (USD billion )

Source: IESA ESDM Report

Consumer ElectronicsFavorable population composition and disposable income to drive consumer electronics market.

Strategic ElectronicsMilitary communication systems, radars, navigation systems and platforms designed for defense to drive strategic electronics

Industrial ElectronicsThe Make in India Programme to boost engineering, electrical, automotive thus driving industrial electronics.

Computer HardwareThe usage of computers and peripherals in commercial and industrial establishments is likely to grow at a rapid pace

Electronic Components

Rationalization of tariff structure, phased manufacturing and special incentives to boost electronic components

Light Emitting DiodesLighting infrastructure is evolving with replacement of conventional products with LED lighting driven by government initiatives.

Consumer Electronics, 54

Industrial Electronics, 18

Electronic Components, 15

Strategic Electronics, 6

Computer Hardware, 5Light Emitting Diodes, 2

Electronics Market Share (%)

Electronics Industry- Market Share & Composition

Source: Ministry of Electronics & Information Technology Annual Report IESA ESDM Report

30.15

1.79 0.24 0.26 0.86 2.27 0.28 1.40

66.29

4.32 1.05 1.27 1.13

4.37 0.55 2.62

Mobile Phones LED Lighting GPON CCTVs Engine Control Unit Notebooks Smart Meter FPD TV

FY2019 (USD billion )

FY2025 (USD billion )

FY2025

FY2019 FY2025

CCTV Cameras Mobile Phones LED Lighting FPD TVs Notebooks

Mobile Phones FPD TVs Notebooks

FY2019

Engine Control Unit GPON Smart Meters

CCTV Cameras Engine Control Unit GPON Smart Meters LED Lighting

Electronics Industry- Market Opportunity

Source: Euromonitor, 2020, IESA ESDM Report

FY2019 FY2025

Low Value Manufacturing

High Value Manufacturing

In FY2025, these 8 products will occupy

70% of the total Electronic Systems

market

Electronics Industry in India- Mobile Phones

Source: Invest India, Euromonitor, 2020

6,000

3,700 3,500

1,600

223 171 212

1,600

FY2016 FY2017 FY2018 FY2019Mobile Handsets Imports (USD million)Mobile Handsets Exports (USD million)

Noida/ Greater Noida Cluster

Sri City, Andhra Pradesh

Rangareddy and Medchal, Telangana

Sriperumbudur, Tamil Nadu

Mobile Handsets Clusters

Imports fell by 54% in FY19 vis-à-vis FY18

Exports grew 650% in FY19 vis-à-vis FY18

For the first time, exports were equal to imports

227271 292 308

2016 2017 2018 2019

Mobile Handsets Sales Volume (million)

290

17

27

Mobile Handsets Data (Volume)

Production Exports Imports

94% of Mobile Handsets were produced locally

Electronics Industry in India- Air Conditioners

Source: Euromonitor, 2020

1820 21

23 24

FY2015 FY2016 FY2017 FY2018 FY2019Possession of Air Conditioner (% of Households)

139 131 141 164

178

2015 2016 2017 2018 2019

Exports of AC Equipment (USD million)

871 872 1,072

1,328 1,453

2015 2016 2017 2018 2019

Imports of AC Equipment (USD million)

4

11

2017 2023

Market Size of Air Conditioners (USD billion)

Market Size of AC is likely to grow at 17%

CAGR

Growing residential, retail and hospitality

sectors are the primary growth drivers

7 Million Units are expected to be sold in

FY2021

Source:, Ministry of Electronics & Information Technology Annual Report

Electronics Industry in India- Electronic Components

3641

47

54

63

72

FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

Electronics Component Market (USD million '000')

29

2418

29

Market Share (%) of Electronic Components

Electro-Mechanical Components

Passive Components

Active Components

Associated Components

Electronic Components Segmentation

Printer Circuit Boards and Connectors

Electromechanical Components

Wound Components, Capacitors and

Resistors

Diodes and Transistors

Optical Disc, Magnets, RF Tuners

Passive Components

ActiveComponents

AssociatedComponents

Production of 1 billion mobile handsets by FY2025 worth USD185

billion

Mobile Handset Manufacturing Target

Support in emerging technology areas- 5G, IoT/ Sensors, AI, Machine

Learning, Robotics

Ecosystem

USD400 bn domestic electronics manufacturing industry by FY2025

Electronics Manufacturing Target

Procedural simplification for import of second hand manufacturing plant

and machinery

Ease of Doing Business

Electronics Industry- Government Initiatives

Source:: Ministry of Electronics & Information Technology Annual Report

Subsidy of 20% on capital investments in SEZ

Subsidy of 25% on capital investment in non SEZ

Modified Special Incentive Package Scheme

100% FDI allowed under the automatic route

Electronics in Defence- 49% allowed under automatic route

Foreign Direct Investment

For Greenfield Project- 50% of project cost subject to a ceiling of USD 7 million for every 100 acres

For Brownfield Project-75% of Project Cost is subject to a ceiling of USD 7 million

Electronic Manufacturing Clusters Scheme

• PLI for large scale electronics manufacturing to boost demand

• 4%-6% on incremental sales of goods manufactured in India for a period of 5 years

Production Linked Incentive (PLI)

Electronics Industry- Government Initiatives

Source:: Ministry of Electronics & Information Technology Annual Report

Approved Greenfield Electronic Manufacturing Clusters

Adityapur Industrial Area Development Authority

West Bengal

Rajasthan

Gujarat

Madhya Pradesh

Kerala

West Bengal Electronics Industry Development Corporation

Jharkhand

Source:: Invest India

Odisha Industrial Development Corporation

Odisha

Kerala Industrial Infrastructure Development

TelanganaTelangana State Industrial Infrastructure Corporation

Mundra Solar Techno Park

Chhattisgarh State Industrial Development Corporation

Chhattisgarh

Sri City ELCINA RAAGA MAYURI Electronics Park

Andhra PradeshDepartment of Information Technology

ELCINA Electronics Manufacturing Cluster

Madhya Pradesh State Electronics Development

Goa

STMicroelectronics

Global Semiconductor company headquartered in Geneva, Switzerland.

Company Profile

Registered in India as a Private company headquartered in Greater Noida, NCR.

India Operations

TE Connectivity

Designs and manufactures connectivity and sensor products used in automotive, industrial equipment, data communication.

Company Profile

Product portfolio includes circuit protection, connectors, wire protection & management switches, sensors and cables.

India Operations

Electronic Industry- Swiss Case Studies

Develops and delivers semiconductor solutions across the spectrum of microelectronics applications.

Product portfolio includes inkjet print heads, Micro Electromechanical Systems, sensors, set-top box.

Global technology company headquartered in Switzerland.

Registered in India as a Private company headquartered in Bengaluru.

Schurter Electronics

Baumer Technologies

Logitech India

Machinery based company headquartered inSwitzerland

Established in India in the year 1989, it is aleading Manufacturer of a wide range of LevelMeasurement, Industrial Thermometer Filledsystem, RTD Connector

Baumer Technologies India Pvt. Ltd.

Member of the SCHURTER Group based in Switzerland. Manufactures, designs , develops, markets, and distribution

Wide range of products like fuses, fuse holders, circuit breakers for equipment, IEC connectors, etc are manufactured locally with headquarters in Gujarat

Schurter Electronics India Pvt Ltd

A Swiss company focused on innovation and quality produces headsets, speakers and computer mouses

Maintains product development center in Chennai and marketing office in New Delhi

Logitech India

Electronic Industry- Swiss Case Studies

THANK YOU