Analysis on the Electronics & Semiconductor Sector for 2017: IESA

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India Electronics and Semiconductor Associations (IESA), Bangalore, on January 06, 2016, shares the 2016 update and 2017 possibilities on the electronics and semiconductors sector, along with its expectations from government on the upcoming Union Budget.

2016 Update

  • India has become one of the most attractive destination for investments in the manufacturing sector. Global brands like Huawei,TristoneFlowtech Group, Tata Power, LeEco, Zopo Mobile, Panasonic Corporation, Havells India Limited, Airbus, etc. have already invested in India
  • 40 new mobile manufacturing units have been set up in the country, 12 mobile components and accessories units were established
  • The Foreign Direct Investment (FDI) in electronics manufacturing has reached an all-time high of Rs 123,000 crore (US$ 18.36 billion) in 2016, from Rs 11,000 crore (US$ 1.65 billion) in 2014; on the back of enabling policies of the government and its Make in India initiative.

2017 Predictions 

Design to manufacturing

Design has been the key strength of the Indian ESDM Industry since more than a decade. In 2017, we will witness design getting converted in to manufacturing and enriching the supply chain and the overall ecosystem.

In 2017, companies will not only design products to specifications but also consider to overcome potential challenges that could occur during the manufacturing stage and will definitely move up the value chain.

Value added manufacturing

It is expected that more Mobile Phone Companies will set up shops in India and it will gradually move from only assembly to value add manufacturing. Policies like MSIPS and EMCs are already in place to get benefitted from. Now with GST rolling it will be a boon to the ESDM industry.

Exploring new markets

Japan, Taiwan, Singapore, Israel, United States are the few countries that the government and the industry would watch out for. Partnership with these countries will be highly beneficial for the growth and up-gradation of the ESDM industry in India.

However, we believe the market for India to export electronic products will be its neighbouring SAARC regions and Middle East and Africa, UAE being a major importer of Indian goods. Companies are planning to expand their local manufacturing in India and make the country an export hub specifically to cater these markets. We may observe a similar trend starting from 2017

Startups in ESDM

Startups will continue to play a major role in the domains like Internet of Things, ecommerce, etc. There are  21,000+  start-ups in India which are dedicatedly working in the tech space across various domains, including technology-based solutions that will transform human lives and societies, with seamless connects between the cyber and the physical worlds.

There is a huge potential for India in this booming IoT domain and the technological know-how is at par with the global standards. Recently a lot for successful startups are from Tier II and Tier III cities. We will witness more and more entrepreneurs in the ESDM space from Tier II and Tier III cities in the forthcoming year.

By Mr. M N Vidyashankar, President, IESA.

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