IESA releases reports on domestic electronics manufacturing

India Electronic and Semiconductor Association (IESA) has released two studies on domestic electronics manufacturing. The IESA-Frost & Sullivan Report has analyzed the growth and opportunity in the Indian ESDM market, while the “Disability identification study” with Ernst & Young has examined key macro issues that are impairing the growth of electronics manufacturing in the country.
 
As per the study, the ESDM industry in India is expected to grow at a CAGR of 9.9% to reach US$94.2 billion by 2015. This is more than twice the growth rate of the global ESDM market and presents immense potential for the domestic market. Currently, 65% of demand for electronic products is met through imports in the country, and even the balance 35% which is manufactured in India is mainly “Low Value Added Manufacturing”.
 
In this context, the two reports emphasize on developing an ecosystem for bridging the demand-supply gap and make concrete recommendations to the government to create a favourable environment for “High Value Added” electronics manufacturing facilities in India.
 
Sanjeev Keskar, Chairman, IESA, said, “As per the government’s National Policy on Electronics, we have a $100-billion investment target to meet by 2020. As this study corroborates, providing a favourable environment for developing the ecosystem in the country could eliminate disability costs associated with local manufacturing and lead to enormous development of the overall ecosystem. Focussing on the top 25 priority products along with key components could be a huge step forward in solving the problem.”
 
The Frost & Sullivan report presents detailed product-wise SWOT analysis of 25 high priority products that accounts for nearly 82% of the overall electronics consumption in India.