Source: Business Standard, Feb 21, 2017
Bengaluru: India’s ESDM (Electronic System Design and Manufacturing) industry is forecasted to grow at a Compound Annual Growth Rate of 16-23 per cent to reach $171-228 billion by 2020, an industry specific report said on Tuesday.
“In 2015, India’s ESDM industry is sized at $82 billion, growing at a CAGR of eight per cent from 2013. By 2016-17 the sector will become a 100 billion plus opportunity and is estimated to grow further at a CAGR of 16- 23 per cent to reach $171-228 billion by 2020,” the report said.
It said that apart from sector-specific drivers, the forecasts are based on several parameters such as overall GDP growth of India, currency movement, inflation, existing trade agreements, consumer sentiments, potential government consumption, existing government policies, investments, manufacturing entities, and type of value addition in India.
The Indian ESDM Industry Update, an India Electronics and Semiconductor Association (IESA)- Ernst&Young (EY) report was announced at the India Electronics and Semiconductor Association (IESA) ‘Vision Summit’ in Bengaluru.
IESA is the trade body representing the Indian ESDM industry in the country.
On the Indian ESDM sector and economic outlook, the report said that the robust growth of India’s electronics industry is primarily driven by huge domestic demand for products that can be attributed to a multitude of factors, including a growing middle class, rising disposable incomes and favourable duty structures.
Citing large-scale public procurement needs that are driven by government projects like broadband connectivity to villages, rural electrification and e-governance programs as among the reasons, it said favourable ESDM policy initiatives and rising interest of MNCs and Indian enterprises in the sector have created a positive impact on the Indian ESDM value chain.
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