India’s ESDM Sector To Touch USD228 Bn By 2020: EY

by CXOtoday News Desk    Feb 21, 2017

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India’s manufacturing for Electronic Products has been growing at a CAGR of 17% which is expected to increase further to reach USD 228 billion by 2020, according to a new report. The report released at the Vision Summit 2017 jointly by IESA and EY predicts that Electronic Manufacturing Services segment has seen a huge growth over the past two years and has grown from $0.5 billion in 2013 to $1.0 billion in 2015.

“The Indian EMS market is estimated to witness exponential growth of 42-68% over the next five years to reach US$6-13.2 billion and design led manufacturing will amplify growth of India’s ESDM industry,” said IESA.

This is the 12th edition of Vision Summit focused on the central theme of Design led Manufacturing- Redefining the future of India’s ESDM. This edition will feature large and medium sized IT companies as well as the starts ups. IESA is working along with the Central/State Government in developing policies and taking measures to scale up indigenous production in India to meet the rising demand for electronics.

The Summit attracted thought provoking keynotes, panel sessions and workshops from CXO’s of global majors like Cypress Semiconductors, Rambus, Qualcomm, IBM, Tessolve, Seagate, Western Digital, MediaTek, Applied Materials and IMEC, Lam Research, Soitec and many others. The event also attracted delegations from Japan, Scotland, Taiwan and Philippines, France, Belgium and USA. 

Senior officials from the state governments of Karnataka, Kerala, West Bengal, Chhattisgarh and Jharkhand highlighted the formulation and implementation of ESDM policies in their respective states. Many IESA Member companies highlighted their commitment to Make in India through investments as a part of M-SIPS approvals. The total combined investment is envisaged to be more than Rs. 1,700 crores.

At the event, IESA announces four MoUs to bridge ESDM Talent Gap at Vision 2017. The body has partnered with Electronics Sector Skills Council of India (ESSCI) and launches NETRA (National ESDM Technology Research Academy). It signed MoU with IIT Kharagpur to jointly create a comprehensive platform for pursuing advanced research work

Also announced were a collaboration with Infineon to work & nurture the start-ups incubated by Electropreneur Park and a MoU with SID (Society for Information Display) for creation of a display industry eco system.

K. Krishna Moorthy, Chairman, IESA said, “We see the year ahead as a year where the ESDM industry will scale up in value addition and value proposition. With the ongoing digital revolution in the country and the thrust from the government to use technology to improve governance delivery to the people, the requirement for developing new and better innovative products and solutions are growing by the day. This has opened up a number of opportunities to promote both product and solutions development and manufacturing them in our country.”

According to him, IESA believes in an integrated approach which is sustainable over a long period of time and hence are focusing on Design and IP ownership as a significant component in our efforts to boost and sustain the manufacturing eco system. Our efforts in recent years to make India grow in different spheres of the ESDM eco system has brought out the need for a continuous development of four key aspects namely - Start up growth, Talent development, Technology exposure and design ownership.

“Our efforts in the recent years have been to set these pillars of growth and create sustainable growth engine in ESDM. Our close association with the central and state governments as well as prominent institutions and industry members have encouraged us to become future ready,” he said.

Highlighting the involvement of various state governments, M. N. Vidyashankar, President, IESA said, “We are a trusted advisory to the Government of India, and have been advocating India’s stance as an ESDM powerhouse. We believe that designing is a crucial component for the development of a successful innovation.”

Vidyashankar believes, “India has already stepped into an era where it has become the default destination for design-led ESDM manufacturing which is opening new gates of opportunities for the economic growth of the nation. Our alliance with State and Government is to bring us closer to our vision of making India the manufacturing hub in the years to come.

We believe that with support from industry, academia and associations, the young workforce of our country, and also with the allocation and incentives of schemes like M-SIPS and EDF to Rs745 crore in this year’s budget, we strongly believe that India will be the next manufacturing powerhouse of the globe,” he concluded.