India has witnessed a huge growth in demand for electronic products over the last decade, and the electronics system design and manufacturing (ESDM) sector is expected to make a significant contribution to India’s economy, said experts at the Bengaluru Tech Summit.
Electronics production currently contributes 3.3% to the economy, which is estimated to grow to 6% or $520 billion by 2025, as per a report by India Electronics and Semiconductor Association (IESA) and Frost & Sullivan.
With greater impetus, that can also go up to more than $410 billion, the report said.“A strong partnership between industry and government is vital in creating an ecosystem for fabless startups and electronics products companies. We are proposing the creation of a $1 billion ESDM Innovation fund, move to high-value manufacturing through global partnerships, and creation of the National Institute for Semiconductor Electronics Research (NISER),” said Satya Gupta, vice chairman of IESA.
The pandemic has highlighted the need to have strong and robust electronics research and manufacturing ecosystem in the country as electronics forms the backbone of all strategic sectors like healthcare, security, defence, transportation, financial inclusion and agriculture.
“The trend of AI and systems are getting more autonomous, whether it’s cars, homes, work environment or appliances, as the products have gained capacities to send everything, know everything and handle the situations seamlessly. The landscape of electronic and semiconductor units is changed completely by the modern technologies like EV, AI, industrial IoT, augmented reality, security, safety and big data,” Santosh Kumar, MD of Texas Instruments.
