The government policy and incentives as well as the |
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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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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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