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INDIAN SEMICON INDUSTRY TO REACH $94.

2B BY
2015
Summary:India needs to reduce reliance on imports, as the Indian
electronic system design and manufacturing industry promises to
deliver a growth of 9.9 percent per year.
The India Semiconductor Association (ISA), the trade body
representing the Indian electronic system design and manufacturing
(ESDM) and semiconductor industry, on Tuesday released the sixth
ISA-Frost & Sullivan Report on the India ESDM Market 2011-2015.
The report indicates that the Indian ESDM industry is on a growth
trajectory of 9.9 percent compound annual growth rate (CAGR), from
US$64.6 billion in 2011 to a forecasted US$94.2 billion in 2015.
Speaking at the launch, ISA chairman Satya Gupta said: "Growth
rate of 9.9 percent for the Indian ESDM industry is fantastic
considering the tough global economic environment."
However, the industry continues to have heavy reliance on imports,
with 65 percent of demand for electronics products being met by
imports. In the absence of policy interventions, imports are likely to
grow from US$28 billion in 2011 to US$42 billion in 2015.
"With growing market demand, world-class talent, and favorable
government policies, it is the time for India to seize the opportunity
of US$94.2 billion market through innovative domestic product
development and value-added manufacturing--rather than relying on
imports and low value-add screwdriver assembly," Gupta added.
ISA president PVG Menon said: "The next few years will be crucial for
the growth and development of the 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 defense,
and medical electronics."
Other key findings of the report are as follows:

High value-added manufacturing to decline to 6.7 percent in


2015, resulting in a cumulative opportunity loss of US$200 billion
during 2011-15

Total semiconductor market grows from US$6.03 billion in 2011


to US$9.7 billion by 2015. Local demand and sourcing grows from
US$2.9 billion in 2011 to US$3.6 billion in 2015, due to heavy
reliance on imported electronic products

India will achieve 50 percent total domestic manufacturing by


2015, creating additional direct employment of 200,000.
The opportunities in the ESDM ecosystem would also bring to the
fore the talent and know-how of small and midsize enterprises in
India, which could play a crucial, supporting role to global
companies, Indian public sector units, 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, according to a statement
issued by ISA.