Indian ESDM industry on growth trajectory of 9.9 percent CAGR from 2011 to 2015

INDIA: The India Semiconductor Association (ISA) released the 6th ISA-F&S Report on the India ESDM Market (2011-2015). The report indicates that the Indian ESDM industry is on a growth trajectory of 9.9 percent CAGR -- from $64.6 billion in 2011 to a forecasted $94.2 billion in 2015. This has buoyed the spirits of the industry which is now looking forward to healthy growth during this period.

The report was released in Bangalore in the presence of members and office bearers of the ISA including Dr. Satya Gupta, chairman, Sanjeev Keskar, vice chairman, Dr. Pradip Dutta immediate past chairman, PVG Menon, president and Ashok Chandak, executive council member, who was convener of this effort.

Dr. Satya Gupta, chairman, ISA said: “The growth rate of 9.9 percent for the Indian ESDM industry is fantastic considering a tough global economic environment. With growing market demand, World class talent and favourable government policies, it is the time for India to seize the opportunity of $94.2 billion market through innovative domestic product development and value added manufacturing -- rather than relying on imports and low value add screw driver assembly."

Key findings of the report include:
* Rapidly growing domestic ESDM industry: CAGR of 9.9 percent industry will grow from $64.6 billion in 2011 to an estimated $94.2 billion in 2015.

* Reliance on imports continues to be high, with 65 percent of the demand for electronics products being met by imports. In the absence of policy interventions, imports are likely to grow from $28 billion in 2011 to $42 billion in 2015.

* High value added manufacturing to decline to 6.7 percent in 2015 resulting in a cumulative opportunity loss of $200 billion during 2011-2015.

* Total semiconductor market grows from $6.03 billion in 2011 to $9.7 billion by 2015. Local demand and sourcing grows from $2.9 billion in 2011 to $3.6 billion in 2015, due to heavy reliance on imported electronic products.

* Achieving 50 percent total domestic manufacturing by 2015 will create additional direct employment of 2 lakhs.

PVG Menon, president, ISA, said: “The next few years will be crucial for the growth and development of the Indian ESDM industry. The ESDM Industry must now focus on the number of areas where India can increase self-reliance and both create and leverage intellectual property assets and the high design capability found in India to develop unique global products for and from India. Examples are areas like computing devices and smart electronics, aerospace and defence and medical electronics."

The opportunities in the ESDM ecosystem would also bring to the fore the talent and know-how of small and medium enterprises in India, who could play a crucial, supporting role to global companies, Indian Public Sector Units (PSUs) and Indian multinationals, engaged in the design and manufacture of electronics. The ISA is also working actively to encourage entrepreneurship and innovation in the ESDM sector in India, and believes that these will be crucial to achieve the vision of building the $400 billion ESDM industry in India.