Feb.

3, 2015
http://www.businessstandard.com/article/economypolicy/semiconductorindustrywarmsuptoopportunities
undermakeinindiaprogrammme115020200269_1.html

Semiconductor industry warms up to opportunities under

'Make in India' programmme
Selfrelianceinelectronicsproductstobenefitcriticalsectorlikespaceresearch,
saysformerISROchairman
cent of which are global companies. The sector
employs around 2 million employees. The
industry body expects that over the next five
years, the sector would create around 27 million
job opportunities and by that time the country is
expected to be self-reliant in electronics goods
demand.

Bengaluru : With the government pushing local

manufacturing with initiatives like Make in
India, smart cities and Digital India, the
industry expects the country to reduce its
dependence on electronics imports by almost 15
percentage points to around 50 per cent by fiscal
2016-17.
In 2014-15, electronics system design and
manufacturing (ESDM) market in India was
estimated to be around $90 billion of which
around 65-70 per cent of the demand was met
through
imports.
By 2016, we expect to bring it (exports) down to
50 per cent, said Ashok Chandak, chairman of
industry
body
India
Electronics
and
Semiconductor Association (IESA). This is an
achievable goal.
Presently, there are around 250 companies
working in the electronics system design and
manufacturing (ESDM) in India almost 40 per

With aggressive engagement from government,

industry bodies and corporates, we are confident
the ESDM environment will soon witness
manufacturing to gather pace. The involvement of
state governments has provided the required
momentum with special manufacturing zones for
electronics
manufacturing,
said
M
N
Vidyashankar, president of IESA.
Demand from key segments and Production rampups are expected to create an additional
investment of $15 billion in the sector with spinoffs. The industry also expects that with the focus
on domestic manufacturing and demand from key
sectors will create new avenues for the sector and
boost the market to become a whopping $400
billion by 2025. For examples, even in mission
critical segments like space research, the
requirement of electronics and semiconductor are
mostly met through imports which the Indian
space research organization (ISRO) is now
looking at indigenizing.
ISRO significantly indigenized satellite missions,
including the launch vehicles, satellites and the
networks. Today, we have set an example of low
cost space missions with a very high degree of
success. However, in the electronics and

Feb. 3, 2015
http://www.businessstandard.com/article/economypolicy/semiconductorindustrywarmsuptoopportunities
undermakeinindiaprogrammme115020200269_1.html

semiconductors, India needs to indigenize on a

higher scale. The onus is on the Indian Electronics
and Semiconductor Industry to fulfill this gap,
said former ISRO chairman Dr. K Radhakrishnan.
He said most of the important components in
ISRO-made launch vehicles or satellites are
electronics which are mostly being imported at the
moment. In PSLV, the important component is
10 per cent while in the GSLV, it is 20 per cent
and in satellites, it is as high as 35 per cent. There
is a lot of scope for the Indian Electronics and
Semiconductor Industry to contribute to the space
programme in the long run, he added.

As a part of the Digital India programme, the

government has recently proposed to set up an
Electronic Development Fund (EDF). Meanwhile,
the Software Technology Park of India (STPI) is
also promoting entrepreneurship in the electronics
space by through incubators.
"We are also preparing to set up an electronic
system incubator in association with the Delhi
University and IESA in New Delhi. This
incubator which is known as Electropreneur Park
will support entrepreneurs from making products
till marketing them, said Omkar Rai, Director
General, STPI, Govt. of India