1. Electronics India
The Second Sunrise
Vandana Srivastava

2. Electronics Industry: World Scenario
Largest and fastest growing manufacturing industy in the world.
Reported at USD 1.75 Trillion and expected to reach USD 2.4 Trillion by 2020.

3. Electronics Industry: Indian Scenario
Huge Market : Rapid increase in domestic demand due to-
Growth in income levels leading to higher off take of
Electronics products
Automation demands of corporate sectors
Government’s focus on e-governance.

4. 4 Big Reasons Why India ? Huge Market Large Talent Pool
Conducive Policy
Low Operating Costs

5. Demand & Production Trends for 2020
CAGR – 37%
Year
Demand CAGR – 24.4%
CAGR – 15%
Values in US$ Bil

6. Electronics Market in India
Burgeoning Needs, Emerging Opportunities

7. US$ 60-80 Bil US$ 60-80 Bil | Semiconductors
Projected semiconductor design market in 2020
US$ Bil
Projected semiconductor market in 2020
US$ Bil
Cost of semiconductor design (US$ Mil, 2010)

8. ~ US$ 11 Bil ~ US$ 34 Bil |Telecom equipment Demand in 2010
Broadband on Demand by 2015, 600 Mil connection by 2020 at min. 2 Mbps speed
NOFN : US$ 4 Bil project to provide broadband connectivity to panchayats
NKN : US$ 1.2 Bil Infra project to connect educational and research institutes
Total telephone subscribers ~ 950 Mil, teledensity 77%
Demand in 2010
~ US$ 11 Bil
Projected demand 2020
~ US$ 34 Bil

9. | Consumer Durable Market
The consumer durables market recorded revenues of USD6.3 billion in FY10
During FY03-10, the industry expanded at a CAGR of 11.7 per cent
Urban markets lead the revenues, accounting for two-thirds of the total sales in India
Refrigerators , Air conditioners (ACs) , Washing Machine & Televisions Driving Growth

10. | Consumer Electronics
Consumer Electronics (CE) represents one of the largest segments of the overall electronics industry in India.
The market is anticipated to grow at a CAGR of around 17% during to reach over US$ 15 Billion by the end of 2015

11. | Automotive Electronics
Digitization of controls and expanding inclusion of safety and sophistication features.
Evolving trend of localization in product procurement by Auto OEMs
Value of electronics in automobiles ~ 20%-40%, increasing rapidly
Production of nearly 18 Mil Automotive vehicles in

12. | Medical Electronics
Size of medical electronics equipment market by 2020 ~ US$ 5 Bil
GoI committed to development of
Affordable medical electronic device industry
Devices typical to the environmental & infrastructural condition prevalent in India
Adapted from Indian Medical Electronics Industry Outlook , Deloittee & FICCI , December 2011

13. | Solar Power Jawaharlal Nehru National Solar Mission
Enabling policy framework for the deployment of 20,000 MW of solar power by 2022.
Ramp up capacity of grid-connected solar power generation to 1000 MW within three years – by 2013
An additional 3000 MW by 2017 through the mandatory use of the renewable purchase obligation by utilities backed with a preferential tariff.
India has had significant scope in solar cell and module manufacturing.
The disability due to lack of presence in the upstream sectors, such as polysilicon and wafer is getting addressed
Government in the advanced stage of getting a Fab setup in India.

14. | Aerospace Sector Defense
Major defence acquisition and development programmes comprising Medium Multi Role Combat Aircraft (MMRCA), Fifth Generation Fighter Aircraft (FGFA), Multirole Transport Aircraft (MTA), Medium Lift Helicopters (MLH) and Light Utility Helicopters (LUH).
Aviation
Passenger and cargo movement has increased by a CAGR of 19.14% and 9.91% during the period from to
The fleet size has grown by 23.77%.
The civil aviation market is expected to register more than 16 per cent CAGR during
The Indian commercial aerospace market is estimated to absorb about 1,100 commercial jets worth Rs.585,000 crore over the next 20 years.
Space
Indigenous suppliers provide an estimated 70 per cent of the technology content.
The current major space programmes are PSLV, GSLV, INSAT and IRS.

15. < US$ 1 Bil ~ US$ 35 Bil | LED Market Demand in 2010
Lower carbon emissions by 20-25% by 2020
Distribution of free LED lights to all Below Poverty Line (BPL) families (20 Mil lights)
Government initiatives :
Excise duty reduced to 6% on LED lamps and LEDs
SAD fully exempted on LEDs used for manufacture of LED Lamps
Demand in 2010
< US$ 1 Bil
Projected demand 2020
~ US$ 35 Bil

16. US$ 34 Bil | Computers Projected Market for laptop, desktop by 2020
India PC shipments increase in 2012 ~ 17%; world average ~ 4.4%
GoI aims to provide 1 tablet to every student under Aakash scheme
State Government initiatives
Free laptop to students in Tamil Nadu and Uttar Pradesh
Other states coming up with similar schemes

17. 200 Million units | Set Top Box
Projected Market for Set Top Box in next 5 years
Cabinet has approved providing Digital Addressable System (DAS) throughout country by December 2014
Tamil Nadu state government owned Arasu Cable TV Corporation floated tender for 2 Mil STB
200 Million units

18. Electronics Market by segment
Market Size *
Telecom Equipment 34
Laptops, Desktops, Tablets
LED 35
Set Top Boxes 10
Automotive Electronics
Medical Electronics
8.5
Consumer Electronics
India: 2020
Electronics Market by segment
* US$ Billions

19. Challenges Strengths Infrastructure gap Tax Structure Chip Designing
Supply chain and logistics
Inflexible labour laws
Limited R& D focus
Inadequate funding
Limited value addition
Strengths
Chip Designing
Embedded system software
Huge market
Large talent pool
Low operative costs
Conducive environment

20. Conducive Policy Environment
Infrastructure, Incentives, Innovation

21. National Policy on Electronics, 2012
Holistic, Investor-friendly, Market-driven
ELECTRONICS INDIA
Billion Needs, Million Chips

22. Investment : US$ 100 Bil Production : US$ 400 Bil Employment : 28 Mil
NPE Vision 2020
“To create a globally competitive electronics design and manufacturing industry to meet the country's needs and serve the international market”
Investment : US$ 100 Bil
Production : US$ 400 Bil
Employment : 28 Mil

23. National Policy on Electronics | Major strategies
ESDM Sector
National Policy on Electronics | Major strategies I
Setting up of Semi-conductor Wafer Fab in India II
Preferential Market Access
III
Modified Special Package Incentive Scheme (M-SIPS) IV
Electronics Manufacturing Cluster Scheme (EMC) V
Electronics Development Fund (EDF) VI
Mandating Safety Standards
VII
Human Resource Development
VIII
Communication & Brand building
Number of strategies identified under NPE >50

24. Billion Needs, Million Chips
Electronics Manufacturing Clusters
Infrastructure Development
Roads
Power
Water
ETP’s
Testing facilities
Social Infrastructure
Subsidy of 50-75%
Subsidy upto ~USD 10 mil per 100 acres of land
Applicable to both Greenfield and Brownfield projects
Targeting 10 Clusters in 2013, and 200 by 2020
ELECTRONICS INDIA
Billion Needs, Million Chips

25. Billion Needs, Million Chips
Modified SIPS
Substantial CAPEX subsidy
Reimbursement of CVD/excise for capital equipment in non-SEZ units
Reimbursement of Central taxes and duties for 10 years in select high tech units like fabs and ATMPs
Available for entire value chain of identified electronics products
Incentives available for 10 years from the date of approval
Subsidy of 20-25%
ELECTRONICS INDIA
Billion Needs, Million Chips

26. Billion Needs, Million Chips
Semiconductor Fab
FAB in India
Decision by March 2013
India : Latest destination for Chip mfg. based on strength of Chip design
Global responses sought in the form of EOI to setup Fabs
Leading players have expressed interest
Partners for Fab project to be finalized by March 2013
ELECTRONICS INDIA
Billion Needs, Million Chips

27. Billion Needs, Million Chips
Preferential Market Access (PMA)
Preference to domestically manufactured electronic goods in
Government procurement
Electronic goods having security implications
Extent of Government procurement from domestic manufacturers will not be less than 30 % of the total procurement.
Enabling framework
WTO compatible
No discrimination between foreign and Indian companies
ELECTRONICS INDIA
Billion Needs, Million Chips

28. Daughter fund -Innovation
Electronics Development Fund (Proposed)
Size of EDF
US$ 2 Bil
EDF
Daughter fund – infra
Typical Daughter fund
Daughter fund -Innovation
Fund to promote Innovation and IP and R&D, product commercialization, etc in ESDM, nano-electronics & IT sectors
Comprises of “Daughter Funds” of size US$ 20 Mil -100 Mil
Each fund to have Govt. share from 25% - 75%; remaining from private and financial institutions
ELECTRONICS INDIA
Billion Needs, Million Chips

29. Billion Needs, Million Chips
Mandating standards
Order comes into effect from
April 3, 2013
15 electronics products notified under safety standards on October 3, 2012
Allows Self registration
BIS accredited labs to test the goods
ELECTRONICS INDIA
Billion Needs, Million Chips

30. Billion Needs, Million Chips
Export Incentives
Export Incentives on FOB Value
Focused Product Scheme -2% duty credit script
Special Focused Product Scheme-5% duty credit script
Focused Market Scheme
2-5%
ELECTRONICS INDIA
Billion Needs, Million Chips

31. Billion Needs, Million Chips
HR Initiatives
PhDs in Electronics by 2020
2500 annually
Electronics and Telecom Sector Skill Council set up
31 ICT and Electronics Academies-Scheme under approval
Skill Development for 1 mn persons
Special Manpower Development Programme- Phase III for VLSI and chip design for 10,000 students .
ELECTRONICS INDIA
Billion Needs, Million Chips

32. Electronics?
Think India !