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Strengthening ESDM in India- Better Nation, Brighter Tomorrow

M N Vidyashankar, President, IESA
Wednesday, October 8, 2014
M N Vidyashankar, President, IESA
IESA is the premier trade body representing the Indian Electronic System Design and Manufacturing (ESDM) industry and has been represented it since 2005.

Indian ESDM Industry The Indian electronics system design and manufacturing (ESDM) industry has witnessed an accelerated momentum over the past few years. Driven by uninterrupted growth, the ESDM industry in India is globally renowned for its consumption potential. Changing global landscapes in electronics design and manufacturing capabilities, and cost structures have turned the attention of global companies towards India. The global fraternity in the electronics landscape is looking to build local capabilities in India with an agenda to bring more competitiveness in the domestic market and also spread the Indian innovation across the world.

Challenges
Developing the ecosystem is crucial for bridging the supply demand gap. Although India's ESDM market is growing at a robust rate, most of the demand is being met through imports. The domestic ESDM market is expected to reach $94.2 billion in 2015 from $68.3 billion in 2012. The major challenge faced by India today is that there is not adequate manufacturing in the country to meet the demand for ESDM. It is estimated that by 2020, the demand-supply gap will reach close to $300 billion and will lead to a situation where the electronics import bill for the country will exceed oil import costs.

Government as an Enabler for the ESDM Sector
The Indian Government, through the Department of Electronics and Information Technology (DeitY), has instituted a number of forward-looking policies to foster the growth of the Indian electronics ecosystem. These policies are aimed at holistic development of the ESDM industry by offering specific incentives for the development of each element in the value chain. These policy measures are:


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