Electronic Systems

India's electronics production is projected to become $300 Bn by FY26

Last updated: March 8, 2024

Driven by Digital India and Make in India initiatives, India is emerging as a global electronics manufacturing hub.

$ 1 Tn

Projected valuation of India's digital economy by 2026

~$110 Bn

Projected valuation of semiconductor market

$30 Bn

Fiscal incentives for ESDM & Allied Sectors

100%

FDI allowed under the automatic route.

164x

growth in data consumption in the last 7 years

$101 Bn

Domestic production of electronics in FY23

$10 Bn

Semicon India Outlay

3rd

largest concentration of technology startups in the world, at over 9,000.

Fund of funds

EDF to set up as a “Fund of Funds” for electronics, nano-electronics, and IT ventures.

LI Scheme to 10 key Sectors for Enhancing India’s Manufacturing Capabilities and Enhancing Exports

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in the following 10 key sectors for Enhancing India’s Manufacturing Capabilities and Enhancing Exports

National Policy on Electronics

The Government attaches high priority to electronics hardware manufacturing and it is one of the important pillars of both "Make in India" and "Digital India" programmes of Government of lndia.
Electronics Development Fund Policy

Electronics Development Fund Policy provides a framework to set up an Electronics Development Fund (EDF) as a Fund of Funds which will foster R&D and innovation in technology sectors like electronics, IT and nano-electronics. EDF will support Venture Funds and Angel Funds, which will be professionally managed and are dedicated to these sectors.
National Manufacturing Policy

India has announced a national manufacturing policy with the objective of enhancing the share of manufacturing in GDP to 25% within a decade and creating 100m jobs.

Preference for Domestically Manufactured Electronic Goods

MeitY has notified the Policy for providing preference to domestically manufactured electronic products.
Electronic Manufacturing Clusters (EMC)

To make India a global player in the field of Electronics Manufacturing and to offset difficulties faced by industries for reliable infrastructure
Modified Special Incentive Package Scheme

The Government has approved Special incentive package to promote large scale manufacturing in the Electronic System Design and Manufacturing (ESDM) sector.
National Cyber Security Policy

It has emerged as one of the most significant growth catalysts for the Indian economy.
e-waste (Management) Rules

These rules shall apply to every manufacturer, producer, consumer, bulk consumer, collection centres, dealers, e-retailer, etc.
Scheme for Promotion of manufacturing of Electronic Components and Semiconductors (SPECS)

The Government attaches high priority to electronics hardware manufacturing as it is one of the important pillars of both “Make in India” and “Digital India” programmes of Government of India.
Modified Electronics Manufacturing Clusters

To boost the electronics sector, the Government of India has approved financial assistance of more than US$490 million to the Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme for a period of eight years.

Production Linked Incentive Scheme (PLI)

The Union Cabinet has approved the Production Incentive Scheme (PLI) for large scale electronics manufacturing.

Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)

The Government has agreed to offer financial incentive of 25% of capital expenditure for the manufacturing of goods that constitute the supply chain of an electronic product under the SPECS.
Introduction of Production Linked Incentive Scheme (PLI) for Electronic Components Manufacturing and Mobile Phones

Introduced by Union Minister Sh Ravi Shankar Prasad, the PLI will facilitate the awarding of up to US$ 5 bn over a period of 5 years. The scheme is also expected to create 300,000 employment opportunities and increase the value addition for electronic systems by 45-50% over the course of five years.

PLIs announced as part of Aatmanirbhar Bharat 3.0

Production Linked Incentives for ten sectors have been announced as part of the Aatmanirbhar Bharat 3,0 stimulus package.
Intermediary Guidelines and Digital Media Ethics Code

The GoI has framed the Intermediary Guidelines and Digital Media Ethics Code to tackle concerns around lack of transparency, accountability and rights of users related to digital media.

PLI for IT Hardware

The Union Cabinet has approved the Production Linked Incentive (PLI) Scheme for IT Hardware to boost domestic manufacturing and attract large investments in the value chain.The Target Segments under the proposed Scheme include Laptops, Tablets, All-in-One PCs and Servers.
PLI for White Goods

The Union Cabinet has approved the Production Linked Incentive (PLI) Scheme for White Goods (Air conditioners and LED lights ) to make manufacturing in India globally competitive by removing sectoral disabilities, creating economies of scale and ensuring efficiencies.

Ministry of Electronics and Information Technology

+91-11-24301851

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e-Development of India as the engine for transition into a developed nation and an empowered society.

Manufacturers Association for Information Technology

+91-11-2685 5487 , 4287 8418

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Set up in 1982, MAIT is the apex body representing India's ICT sector.

Electronic Industries Association of India

011 4161 5985

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Electronic Industries Association of India has established itself as an interactive forum for electronics and IT manufacturers.

Consumer Electronics and Appliances Manufacturers Association

+91 120 4265697

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CEAMA is an all India body representing Consumer Electronics, Home Appliances and Mobile Industry.

India Electronics Semiconductor Association

+91 80 4147 3250 / 51

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IESA supports development of Indian Electronics System Design and Manufacturing (ESDM) ecosystem.

Indian Electrical & Electronics Manufacturers Association

+91 22 2493 0532 / 6528 / 6529

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IEEMA is an industry association of manufacturers of electrical, industrial electronics and allied equipment in India.

Medical Technology Association of India

+91 124 4382629

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MTaI is an association of research-based medical technology companies who have made remarkable investments by setting up a large number of R&D centres and manufacturing plants in India.

Institution of Engineering and Technology

+91 80 4089 2231

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IET has over 13,000 members - the largest membership base for the body outside of the UK.

Bharat Electronics Limited

+91- 80-25039300

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The Indian state-run enterprise offers products and solutions related to a vast range of professional electronics.

Ministry of Electronics and Information Technology

Investment Opportunities

  • Internet of Things, Artificial Intelligence, Machine Learning capacities are growing in India
  • Infrastructure and components for Digital India, Bharat Net and Smart Cities Mission projects.
  • Setting up of Electronics Manufacturing Clusters (EMCs) around India envisages new large scale investments.
  • Electronics India B2B platforms for technology players to explore partnership opportunities.
  • Semiconductor Design and Wafer Fabrication have already led to R&D partnerships
Useful Links:

Key Investors

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive and capital establishments

Amphenol manufactures interconnect products for defence and civilian applications

Bosch, a leading multinational engineering and electronics company, has its largest development center outside Germany in India. 

Delphi Technologies manufactures optimized electronic controls for automotives

Qualcomm India develops next-generation mobile technologies, with latest tech innovations and solutions

Samsung operates the world's largest mobile phone plant in India

LG runs manufacturing operations in India, one of its largest markets

GE makes healthcare, energy, aviation, digital and lighting products in India

Haier builds consumer electronics and home appliances in India

ENABLING ENVIRONMENT

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive, and capital establishments

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