Home > News > Business India News

Growth rate of 9.9pc for ESDM industry

Posted on Jan 22, 04:36PM | IBNS

The India Semiconductor Association (ISA), the premier trade body representing the Indian Electronic System Design and Manufacturing (ESDM) and Semiconductor industry, on Tuesday released the 6th ISA - F and S Report on the India ESDM Market (2011-2015).

The report indicates that the Indian ESDM industry is on a growth trajectory of 9.9pc CAGR -- from USD 64.6 billion in 2011 to a forecasted USD 94.2 billion in 2015.

This has buoyed the spirits of the industry which is now looking forward to healthy growth during this period.

The report was released today at a press conference in Bangalore in the presence of members and office bearers of the ISA including Dr. Satya Gupta, Chairman, Sanjeev Keskar, Vice Chairman, Dr. Pradip Dutta immediate past Chairman, PVG Menon, President and Ashok Chandak, Executive Council Member who was convener of this effort.

Speaking at the launch, Dr. Satya Gupta, Chairman said, "Growth rate of 9.9pc for the Indian ESDM industry is fantastic considering a tough global economic environment. With growing market demand, World class talent and Favourable Govt. policies, it is the time for India to seize the opportunity of USD 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."

Key findings of the report include:

Rapidly growing domestic ESDM industry: CAGR of 9.9pc Industry will grow from USD 64.6 billion in 2011 to an estimated USD 94.2 billion in 2015

Reliance on imports continues to be high, with 65pc of the demand for electronics products being met by imports. In the absence of policy interventions, imports are likely to grow from USD 28 billion in 2011 to USD 42 billion in 2015.

High Value Added Manufacturing to decline to 6.7pc in 2015 resulting in a cumulative opportunity loss of USD 200 Billion during 2011-2015.

Total Semiconductor Market grows from USD 6.03 Billion in 2011 to USD 9.7 Billion by 2015. Local demand and sourcing grows from USD 2.9 Billion in 2011 to USD 3.6 Billion in 2015, due to heavy reliance on imported electronic products.

Achieving 50pc Total Domestic Manufacturing by 2015 will create additional direct employment of 2 Lakhs

PVG Menon 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 opportunities in the ESDM ecosystem would also bring to the fore the talent and know-how of small and medium enterprises in India, who could play a crucial, supporting role to global companies, Indian Public Sector Units (PSUs) and Indian multinationals, engaged in the design and manufacture of 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 USD 400 Billion ESDM industry in India.