Orissa Govt. Strategic Plan for ESDM
White Paper – ESDM Industry - DCMSME
29 April 2017
Excerpts from Make in India Site
The electronics market of India is one of the largest in the world and is anticipated to reach USD 400 billion in 2020. The market is projected to grow at a compound annual growth rate (CAGR) of 26% per cent during 2014-2020.
Top 10 electronic products by total revenue:
mobile phones,
flat panel display TVs,
notebooks,
desktops,
digital cameras,
inverters / UPS,
memory cards/USB drives,
EMS/LCD monitors
servers.
Expected market size for major electrics sub-sectors in India by 2020:
Telecom Equipment (USD 34 Billion).
Laptops, Desktops, Tablets (USD 34 Billion).
LED (USD 35 Billion).
Consumer Electronics (USD 29 Billion).
Set Top Boxes (USD 10 Billion).
Automotive Electronics (USD 10 Billion).
Medical Electronics (USD 8.5 Billion).
3rd largest pool of scientists in the world.
USD 29 Billion consumer electronics market by 2020.
USD 94.2 Billion – demand projected by 2015.
9.88% industry growth rate between 2011-15.
2 government-driven incentives – National Knowledge Network & National Optical Fibre Network.
STATISTICS
The Indian ESDM industry was estimated to be worth USD 68.31 Billion in 2012 and is anticipated to be worth USD 94.2 Billion by 2015 with a CAGR of 9.88% between 2011-15.
Growth Drivers
65% of the current demand for electronic products is met by imports.
Huge consumption in the Middle East and in emerging markets such as North Africa and Latin America.
GOVERNMENT POLICIES :
Electronics Manufacturing Clusters Scheme (EMC).
Skill Development Scheme.
Supply Facilities
Semiconductor Wafer Fabrication (FAB) manufacturing facilities being set up in India in Uttar Pradesh and Gujarat with a total investment of USD 10.5 Billion.
Human Resources - Skilled Personnel
3rd largest pool of scientists in the world.
SECTOR POLICY
NATIONAL POLICY ON ELECTRONICS (NPE) :
NPE’s vision is to create a globally competitive electronics design and manufacturing industry to meet the country’s needs and serve the international market.
The objective is to build an ecosystem for a globally competitive ESDM sector in the country by attracting investment of about USD 100 Billion and generating employment for 28 Million people at various levels.
The ultimate aim of the policy is to develop core competencies in strategic and core infrastructure sectors like telecommunications, automobile, avionics, industrial, medical, solar, information and broadcasting, railways, intelligent transport systems, etc.
A number of state governments have also defined policies in electronics.
Other important policies include the National Telecom Policy and the National Manufacturing Policy.
PREFERENTIAL MARKET ACCESS :
Preference to domestically manufactured electronics goods in government procurement.
Extent of government procurement from domestic manufacturers will not be less than 30% of the total procurement.
http://www.makeinindia.com/sector/electronic-systems-design/
Additional Information
India is one of the fastest growing markets for electronics.
The demand is projected to reach USD 400 Billion by 2020.
Electronics Industry - India - Policy, Plan and Programmes - 8 Jan 2014 In the report at that time demand is forecasted at USD 400 billion and called for production in India of apprx. USD 300 billion. For comparison purpose, Output of China is $823.6 billion in 2010 (
http://iaesjournal.com/online/index.php/TELKOMNIKA/article/viewFile/2854/pdf )
Page providing information regarding important study reports, presentations and other document regarding important policy initiatives regarding electronic items in India
http://deity.gov.in/esdm/policies
Status of Electronics Manufacturing in India
Dec 2016 Report
India is home to the second-largest user base for smartphones at 220 million, and on track to hit 500 million in the next five years.
Under the make in India policy, over the past 18 months, 40 new domestic assembly units and 12 new component or accessory manufacturing units were set up. Research outfit Counterpoint thinks that at least 180 million mobile phones will be assembled in the country out of a total of 267 million phones sold here in 2016.
But, Indian companies will produce the $11 billion worth of components going into 267 million phones (which utilize $80 billion worth of components). This is only 6 percent compared to 70 percent in China and 35 percent in Vietnam.
The indigenisation programme can be taken up in three phases. Phase 1 focus will be things like batteries, chargers, cable, and housing locally; phase 2 manufacturing will be displays and cameras; and phase 3 semiconductor components generated by local fabs. Regarding fabs, government is involved in negotiations and even announcements regarding setting up the factories have been made.
http://www.zdnet.com/article/india-makes-some-gains-in-electronic-manufacturing-but-faces-a-long-arduous-road-ahead/
Make in India - Strategy for Electronic Products - Draft released in May 2016
http://niti.gov.in/writereaddata/files/document_publication/Electronics%20Policy%20Final%20Circulation.pdf
Electronics industry is among the largest and fastest growing manufacturing Industry in the world. The total Electronics Equipment Production of the world during the year 2014 was estimated to be around US$ 2.0 trillion.
Production shares of various segments are:
Computer Systems and Peripherals (26.6 percent)
communication equipment (21.7 percent),
Consumer Electronics (12.6 percent),
Instruments (10.7%),
industrial equipment (9.5 percent)
Equipment for Government / Military (8.8 percent).
Over the years, production bases have shifted
from USA and EU to Asia and the latter’s share in global production has increased to
over 60%.
Electronics Industry is conventionally divided into six segments. The production (revenue) share of each of these segments are
Indian Electronics Industry Revenues by Segment 2014-15
Segment $Billion Percent
Consumer electronics 9.1 28
Electronic components 5.1 16
Industrial Electronics 5.6 17
Computer Hardware 1.7 5
Communication & Broadcast Equipment 9.5 29
Strategic Electronics 1.7 5
Total 32.7 100
In several countries, the controbution of electronic industry to GDP is significant.
For example, it contributes 15.5% to GDP in Taiwan, 15.1% in South Korea and
12.7% in China. But in India, this proportion is only 1.7%.
Initiatives in the country
Skill Development
There have been large-scale initiatives to create skilled manpower to achieve targets of
1,500 Ph.D. in Electronics Sector Design and Manufacturing (ESDM) and another 1,500
Ph.D. in Information Technology and Information Technology Enabled Services
IT/lTES) per year by 2020. The scheme for setting up seven new Electronics and IT
Academies has been approved and the Special Manpower Development Program for
VLSI and Chip Design has also been approved. Financial assistance to the states/UTs for
skill development and vocational training has been approved with a target of 400,000
individuals in the ESDM sector.
Turnaround time of ships at ports averages two to three days compared with 8 to 12 hours at Hong Kong and Singapore. Transporting internally from production location to destination port can
take a long time—14 days from Delhi to Mumbai, according to one estimate.
Real wages in manufacturing in China have been rising at 10% per year since 2007. In 2014, they
stood at more than Rs. 5 lakh per year. These increased wages are rendering China uncompetitive in employment-intensive activities.
Coastal Eport Zones may be set up with more liberal policies.
It would be worth considering a ten-year tax holiday for a firm that invests a substantial pre-specified sum and generates a large pre-specified volume of direct employment. For example, the investment threshold may be set at $1 billion and employment at 20,000.
News - Electronics Manufacturing in India
2017
Government has set a roadmap for local manufacture of mobile components
http://tech.economictimes.indiatimes.com/news/mobile/government-sets-roadmap-for-local-assembly-of-mobile-phones-parts/58427634
Television sales is expected to touch Rs. 1,30,500 crores by 2020.
(The Economic Times article on 31 January 2017)
India’s television market is expected to grow at CAGR of 15.5 per cent to reach US$ 15.2 billion in 2019.
http://www.ibef.org/industry/entertainment-presentation accessed on 1 February 2017.
https://www.techsciresearch.com/news/2008-india-television-market-to-cross-9-billion-by-2021.html
http://www.prnewswire.com/news-releases/india-television-market-forecast--opportunities-2021-techsci-research-report-59457http://www.prnewswire.com/news-releases/india-television-market-forecast--opportunities-2021-techsci-research-report-594573561.html
Summary of Budget 2017-18 for Electronics Industry
1. Promotion of manufacturing of Point of Sale (POS) and other Digital Payment
Devices: POS devices and all goods for manufacture of POS devices, subject to actual
user condition, were exempted from Excise Duty / Countervailing Duty (CVD) vide
Notification No.35/2016-Central Excise dated 28.11.2016. These exemptions which
were valid till 31.03.2017, have been extended up to 30.06.2017 vide Notification
No.6/2017-Central Excise dated 02.02.2017.
Following goods and parts/ components for use in the manufacture of these goods,
subject to actual user condition, have been exempted from Basic Customs Duty
(BCD), Excise Duty / CVD and consequently Special Additional Duty of Customs
(SAD) vide S.No.408A of Notification No.6/2017-Customs dated 02.02.2017 and
S.No.256C of Notification No.6/2017-Central Excise dated 02.02.2017, respectively:
(i) Micro ATMs as per standards version 1.5.1;
(ii) Fingerprint reader / scanner;
(iii) Iris scanner;
(iv) Miniaturised POS card reader for mPOS (other than Mobile phone or Tablet
Computer).
2. Promotion of manufacturing of LED (Light Emitting Diode) Lights: BCD on all
parts for use in the manufacture of LED lights or fixtures including LED lamps has
been reduced to 5%, subject to actual user condition. BCD on all inputs for use in the
manufacture of LED driver or MCPCB (Metal Core Printed Circuit Board) for LED
lights and fixtures or LED lamps has also been reduced to 5%, subject to actual user
condition. Notification No.12/2012-Customs dated 17.03.2012 as amended vide
Notification No.6/2017-Customs dated 02.02.2017 [new S. Nos.410A & 410B
respectively] refers.
Concessional Excise Duty / Countervailing Duty (CVD) @ 6% applicable to LED
driver and MCPCB for use in the manufacture of LED lights and fixtures or LED
lamps has been extended to all parts for use in the manufacture of LED lights or
fixtures including LED lamps, subject to actual user condition. This 6% concessional
Excise duty will be valid till 30.06.2017. Notification No.12/2012-Central Excise
Page 2 of 2
dated 17.03.2012 as amended vide Notification No.6/2017-Central Excise dated
02.02.2017 [S.No.321A] refers.
3. Promotion of manufacturing of Solar Cells and Modules: BCD on solar tempered
glass or solar tempered (anti-reflective coated) glass for use in manufacture of solar
cells / panels / modules has been reduced from 5% to NIL, subject to actual user
condition. Notification No.12/2012-Customs dated 17.03.2012 as amended vide
Notification No.6/2017-Customs dated 02.02.2017 [S. No. 305A] refers.
Excise Duty exemption on solar tempered glass for use in the manufacture of (a) solar
photovoltaic cells or modules; (b) solar power generating equipment or systems; (c)
flat plate solar collectors; and (d) solar photovoltaic module and panel for water
pumping and other applications has been withdrawn and 6% concessional Excise
Duty has been extended on such solar tempered glass, subject to actual user condition.
This 6% concessional Excise Duty will be valid till 30.06.2017. Notification
No.12/2012-Central Excise dated 17.03.2012 as amended vide Notification
No.6/2017-Central Excise dated 02.02.2017 [S. No.187C and S. No.332 A] refers.
Excise Duty has been reduced from 12.5% to 6% on parts / raw material for use in the
manufacture of solar tempered glass for use in (a) solar photovoltaic cells or modules;
(b) solar power generating equipment or systems; (c) flat plate solar collectors; and
(d) solar photovoltaic module and panel for water pumping and other applications,
subject to actual user condition. This 6% concessional excise duty will be valid till
30.06.2017. Notification No. 12/2012-Central Excise dated 17.03.2012 as amended
vide Notification No.6/2017-Central Excise dated 02.2.2017 [new S. No.187D] refers.
4. Promotion of manufacturing of Populated Printed Circuit Boards (PPCBs) of
Mobile Phones: PPCBs of mobile phones have been excluded from the purview of
Nil SAD. Notification No.21/2012-Customs dated 17.03.2012 as amended vide
Notification No.4/2017-Customs dated 02.02.2017 [S. No.1] refers. Simultaneously,
2% concessional SAD has been extended to PPCBs for use in the manufacture of
mobile phones, subject to actual user condition. The concessional SAD will be valid
till 30.06.2017. Notification No. 21/2012-Customs dated 17.03.2012 as amended vide
Notification No.4/2017-Customs dated 02.02.2017 [new S. No. 85B] refers.
2016
October 2016
http://www.ibef.org/industry/manufacturing-sector-india.aspx
http://www.maiervidorno.com/indian-electronics-industry-growth-healthy-pace-consumer-electronics/
http://www.nasscom.in/nasscom-perspective-2025-shaping-digital-revolution
March 2016
India Electronics and Semiconductor Association (IESA), the premier trade body representing the Indian Electronic System Design and Manufacturing (ESDM) industry and The National Association of Software and Services Companies (NASSCOM), today signed a Memorandum of Understanding (MoU) to enable India in becoming a leading player in the next era of ESDM and IT.
25% of country’s GDP by 2025 from IT and ESDM
http://www.nasscom.in/iesa-and-nasscom-partner-speed-%E2%80%98make-india-and-digital-india%E2%80%99-agenda-esdm-and-it
Jan 2016
On 13 January 2016, China - India Mobile phone and component manufacturing summit is taking place and 80 Chinese companies are participating in it.
The telecom industry is expected provide 7 lakh new job opportunities in the next five years (by 2020), a top telecom skill development group said in its assessment that it has submitted to national planning committee NITI Aayog.
Of the total workforce in the sector, the retail and handset segments will employ 35%, service providers 29%, network and IT vendors 18%, telecom gear manufacturing 15% and infrastructure providers 3%, according to its estimate.
http://economictimes.indiatimes.com/industry/telecom/telecom-sector-to-generate-7-lakh-new-jobs-in-five-years/articleshow/50505375.cms
Electronics Manufacturing with the aim of Zero Net Imports - A Pillar of Digital India Policy - Details
http://www.digitalindia.gov.in/content/electronics-manufacturing
2 Feb 2015
Shri Ravi Shankar Prasad, Union Minister wrote in an Times of India article that India consumes up to $100 billion in electronics every year, most of which is imported.
14 Feb 2015
One billion dollar Analog Wafer Fab MOU
IESA (India Electronics & Semiconductor Association) enabled the Memorandum of Understanding (MoU) between US-based Cricket Semiconductor and the Government of Madhya Pradesh for an analog fab proposed to be set-up in the state. The proposed investment is expected to be Rs 6000 crore ($1 BILLION) to set up an analog wafer fab in the country.
The creation of this fab ecosystem coupled with the products and systems value chain is expected to create close to 4,50,000 new jobs, making a potential future economic impact of
$40 billion, over its project life span and reduce electronics import burden for the nation.
http://www.firstpost.com/business/us-based-cricket-semiconductor-plans-set-rs-6000-crore-analog-chip-fab-india-2098659.html
The government expects to double the export of telecom equipment and services to $10 billion (Rs 62,000 crore) in the next five years (14% growth rate).
Current telecom export is Rs 32,000 crore (Rs 320 billion), about Rs 20,000 crore (Rs 200 billion) comes from equipment and products and Rs 12,000 crore (Rs 120 billion) from telecom services such as consultancy projects.
Telecom Equipment and Services Export Promotion Council promotes export of telecom equipment and services.
http://www.rediff.com/business/report/telecom-export-to-double-in-5-years-says-govt/20150214.htm
December 2015
Investment in the electronics manufacturing sector has jumped over six-fold in a year to reach Rs 1.14 lakh crore by December 2015
The turnover of consumer electronics during the year 2014 was Rs 45,000 crore and during 2015 it is likely to be Rs 50,000 crore.
http://articles.economictimes.indiatimes.com/2015-12-31/news/69427004_1_electronic-manufacturing-clusters-1-14-lakh-crore-december-2015
2010
Employment Potential of Electronics Sector in India
It is estimated that around 16.1 million people will be directly employed in the industry by 2014 and 27.8 million by 2020, as compared to the current 4.4 million. According to the report on Manpower for electronics industry, the concentration of manpower is in the manufacturing segment followed by after sales and sales support. R&D on the other hand employs the least number of people. Regulations relating to over-time and contracts also need to be revamped to meet the highs and lows of demand. Hence, the government needs to focus proactively on skill development. The recent report on ‘Human Resource and Skill Requirements in Electronics and IT Hardware’ by the National Skill Development Mission may be referred to in this regards.
Electronics Industry - India - China - USA - World Comparison
India
India is one of the fastest growing markets for electronics.
The demand is projected to reach USD 400 Billion by 2020.
Electronics Industry - India - Policy, Plan and Programmes - 8 Jan 2014 In the report at that time demand is forecasted at USD 400 billion and called for production in India of apprx. USD 300 billion.
China
For comparison purpose, Output of China is $823.6 billion in 2010 (
http://iaesjournal.com/online/index.php/TELKOMNIKA/article/viewFile/2854/pdf )
USA
World
Related Information
International Competitiveness in Electronics
Competitiveness of Indian Electronics and IT Hardware Industry
NPC 2010 Report
http://nmcc.nic.in/pdf/ithardware_03july2010.pdf
1983 USA report
https://books.google.co.in/books?id=PWHa1jDUSdQC
Follow Twitter Hashtag MakeinIndia
https://twitter.com/hashtag/Makeinindia?src=hash
Updated 24 August 2022, 29 April 2017, 16 April 2017
