Indian Semiconductor industry to generate 3.5M jobs by 2015

By siliconindia staff writer   |   Thursday, 02 February 2006, 20:30 IST
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BANGALORE: In a first of its kind report released by the Indian Semiconductor Association (ISA), the apex body of the semiconductor industries in India, and Frost & Sullivan a detailed assessment of electronic equipment consumption and the semiconductor content has been given. This has been judged for 20 semiconductor product categories across 52 end user product segments. The report also assesses the economic impact of the semiconductor driven industry in India in terms of GDP and employment. According to the study, the Indian semiconductor industry is to create over 3.5 million jobs by 2015. At present, the consumption of electronic equipment in India is of $28.2 billion, which is expected to surge to $363 billion by 2015 at a compounded annual growth rate of 29.8 percent pushing the total market for semiconductors to $36.3 billion by 2015. GDP contribution from this sector will grow to more than 12 percent in 2015, from about 2 percent in 2005, creating a much larger induced impact on the economy of the country. Speaking at the launch, ISA’s Chairman, Rajendra Khare said, “The Indian economy has become more dynamic than ever before, as GDP growth went up from 7 percent in 2004-05 to 8 percent in 2005-06. The semiconductor market, which reflects the overall economic activity, is experiencing spectacular growth in India.” The report outlines that the Indian electronic equipment production grew at a growth rate of 25 percent in 2005, which is expected to reach to 50 percent by 2010 and 34 percent by 2015. Indian electronic equipment manufacturing is expected to grow at 5.5 times the growth rate of global electronics equipment production during 2010 and 2015.