The government policy and incentives as well as the |
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i ) |
The current global market size of USD 1.75 trillion is expected to rise to USD 2.4 trillion by 2020 . |
electronic manufacturing cluster policy will enable the industry to grow at such breakneck speed . |
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ii ) ii ) The demand of electronic goods in the Indian market was to the tune of USD 100 billion in 2015-2016 and is expected to rise to USD 400 billion by the end of 2020 . iii ) iii ) At the current rate of growth , the domestic production can cater to a demand of USD 100 billion by 2020 as against the total projected demand of USD 400 billion , leaving a demand-supply gap of nearly USD 300 billion by
2020
Domestic demand is expected to be driven by the growth in income levels leading to higher off-take of electronics products , automation demands of corporate sector and
Government ’ s focus on e-governance . However , with a low domestic manufacturing base and a low value addition , the demand supply gap is likely to reach USD 300 billion by 2020 , which would far exceed the oil imports . To meet this alarming situation , and to enhance domestic manufacturing and valueaddition in the Electronics sector , the Department of
Electronics and Information Technology ( DeitY ), Ministry of
Communications and Information Technology ( MoC & IT ),
Government of India , notified the National Policy on Electronics in 2012 . The NPE 2012 seeks to attract investments to the tune of USD 100 billion and to create employment of 28 million
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3 .
Semiconductor Design :
Semiconductor design has traditionally been the strength for India with approximately
USD 12 billion in 2014 . Hyderabad , in particular , is the hub for several leading semiconductor design houses . Growing technical competence , with stringent IP protection and environment , will enable the semiconductor design industry to grow at 20 % within Telangana . Further , VLSI system design has witnessed a boom in India , and specifically in Hyderabad , due to the increase in demand for chip driven products in consumer electronics , medical electronics , communication , aerospace and other sectors in the State .
4 .
Electronic Components :
The domestic electronic market , including semiconductors , is approximately USD 4 billion in India . With the industry ’ s focus on innovation , quality and price competitiveness , it is expected to grow further .
The Government of Telangana is keen on bringing electronic components into the ambit of the policy to create a concrete vision for the components ecosystem , supported by a strong incentive structure .
Further , a few focus areas have been identified under the umbrella of electronic components
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by 2020 . |
a . |
Defense and Strategic Electronics :
Hyderabad is a major
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This opportunity is driven across the primary elements of the electronic market .
1 .
Electronic Products :
The Electronic Product market is growing at 16 % CAGR over the last decade and is currently a USD 57 billion market . Majority of the local consumption ( 69 %) of the top 25 products is met through imports . The electronic product market is expected to grow at 26 % over the next 5-6 years .
The government aspires to achieve 50 % of the current demand through domestic manufacturing / assembly .
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b . |
hub for defense research and technology in India .
Exponential growth is being seen in Combat systems as well as non-platform based defense strategic programs .
This is further fueled by the offset agreement with the global partners to enable technology capabilities , capacity , and process maturity . The market is expected to be USD
23 billion by 2020 .
LED :
LEDs have witnessed high adoption ratio from consumers in India . Given the strong push towards sustainable solutions , especially in lighting , the Indian LED market is projected to grow to USD 3.5 billion by 2020 .
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2 . |
Electronic Manufacturing Services :
The growth of the
Electronic Product market has led EMS companies to offer low cost manufacturing , faster turn-around for design and quicker time to market . Many global EMC companies have established in India and are key contributors in enhancing the economic ecosystem . The total turnover of EMS
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c . |
Mobile Manufacturing :
Given the low labour cost and the large domestic market , India is on the path of becoming a mobile manufacturing hub . Mobile manufacturing segment has positioned itself as a major contributor to revenue generated from electronics . Realizing the potential of this market , this segment shall receive major focus .
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