Presentation on theme: "Electronics India The Second Sunrise Vandana Srivastava 27-02-32013."— Presentation transcript:
1Electronics IndiaThe Second SunriseVandana Srivastava
2Electronics 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.
3Electronics Industry: Indian Scenario Huge Market : Rapid increase in domestic demand due to-Growth in income levels leading to higher off take ofElectronics productsAutomation demands of corporate sectorsGovernment’s focus on e-governance.
44 Big Reasons Why India ? Huge Market Large Talent Pool Conducive PolicyLow Operating Costs
5Demand & Production Trends for 2020 CAGR – 37%YearDemand CAGR – 24.4%CAGR – 15%Values in US$ Bil
6Electronics Market in India Burgeoning Needs, Emerging Opportunities
7US$ 60-80 Bil US$ 60-80 Bil | Semiconductors Projected semiconductor design market in 2020US$ BilProjected semiconductor market in 2020US$ BilCost 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 speedNOFN : US$ 4 Bil project to provide broadband connectivity to panchayatsNKN : US$ 1.2 Bil Infra project to connect educational and research institutesTotal telephone subscribers ~ 950 Mil, teledensity 77%Demand in 2010~ US$ 11 BilProjected demand 2020~ US$ 34 Bil
9| Consumer Durable Market The consumer durables market recorded revenues of USD6.3 billion in FY10During FY03-10, the industry expanded at a CAGR of 11.7 per centUrban markets lead the revenues, accounting for two-thirds of the total sales in IndiaRefrigerators , 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 OEMsValue of electronics in automobiles ~ 20%-40%, increasing rapidlyProduction of nearly 18 Mil Automotive vehicles in
12| Medical ElectronicsSize of medical electronics equipment market by 2020 ~ US$ 5 BilGoI committed to development ofAffordable medical electronic device industryDevices typical to the environmental & infrastructural condition prevalent in IndiaAdapted 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 2013An 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 addressedGovernment 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).AviationPassenger and cargo movement has increased by a CAGR of 19.14% and 9.91% during the period from toThe fleet size has grown by 23.77%.The civil aviation market is expected to register more than 16 per cent CAGR duringThe Indian commercial aerospace market is estimated to absorb about 1,100 commercial jets worth Rs.585,000 crore over the next 20 years.SpaceIndigenous 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 2020Distribution 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 LEDsSAD fully exempted on LEDs used for manufacture of LED LampsDemand in 2010< US$ 1 BilProjected demand 2020~ US$ 35 Bil
16US$ 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 schemeState Government initiativesFree laptop to students in Tamil Nadu and Uttar PradeshOther states coming up with similar schemes
17200 Million units | Set Top Box Projected Market for Set Top Box in next 5 yearsCabinet has approved providing Digital Addressable System (DAS) throughout country by December 2014Tamil Nadu state government owned Arasu Cable TV Corporation floated tender for 2 Mil STB200 Million units
18Electronics Market by segment Market Size *Telecom Equipment34Laptops, Desktops, TabletsLED35Set Top Boxes10Automotive ElectronicsMedical Electronics8.5Consumer ElectronicsIndia: 2020Electronics Market by segment* US$ Billions
19Challenges Strengths Infrastructure gap Tax Structure Chip Designing Supply chain and logisticsInflexible labour lawsLimited R& D focusInadequate fundingLimited value additionStrengthsChip DesigningEmbedded system softwareHuge marketLarge talent poolLow operative costsConducive environment
21National Policy on Electronics, 2012 Holistic, Investor-friendly, Market-drivenELECTRONICS INDIABillion Needs, Million Chips
22Investment : 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 BilProduction : US$ 400 BilEmployment : 28 Mil
23National Policy on Electronics | Major strategies ESDM SectorNational Policy on Electronics | Major strategiesISetting up of Semi-conductor Wafer Fab in IndiaIIPreferential Market AccessIIIModified Special Package Incentive Scheme (M-SIPS)IVElectronics Manufacturing Cluster Scheme (EMC)VElectronics Development Fund (EDF)VIMandating Safety StandardsVIIHuman Resource DevelopmentVIIICommunication & Brand buildingNumber of strategies identified under NPE >50
24Billion Needs, Million Chips Electronics Manufacturing ClustersInfrastructure DevelopmentRoadsPowerWaterETP’sTesting facilitiesSocial InfrastructureSubsidy of 50-75%Subsidy upto ~USD 10 mil per 100 acres of landApplicable to both Greenfield and Brownfield projectsTargeting 10 Clusters in 2013, and 200 by 2020ELECTRONICS INDIABillion Needs, Million Chips
25Billion Needs, Million Chips Modified SIPSSubstantial CAPEX subsidyReimbursement of CVD/excise for capital equipment in non-SEZ unitsReimbursement of Central taxes and duties for 10 years in select high tech units like fabs and ATMPsAvailable for entire value chain of identified electronics productsIncentives available for 10 years from the date of approvalSubsidy of 20-25%ELECTRONICS INDIABillion Needs, Million Chips
26Billion Needs, Million Chips Semiconductor FabFAB in IndiaDecision by March 2013India : Latest destination for Chip mfg. based on strength of Chip designGlobal responses sought in the form of EOI to setup FabsLeading players have expressed interestPartners for Fab project to be finalized by March 2013ELECTRONICS INDIABillion Needs, Million Chips
27Billion Needs, Million Chips Preferential Market Access (PMA)Preference to domestically manufactured electronic goods inGovernment procurementElectronic goods having security implicationsExtent of Government procurement from domestic manufacturers will not be less than 30 % of the total procurement.Enabling frameworkWTO compatibleNo discrimination between foreign and Indian companiesELECTRONICS INDIABillion Needs, Million Chips
28Daughter fund -Innovation Electronics Development Fund (Proposed)Size of EDFUS$ 2 BilEDFDaughter fund – infraTypical Daughter fundDaughter fund -InnovationFund to promote Innovation and IP and R&D, product commercialization, etc in ESDM, nano-electronics & IT sectorsComprises of “Daughter Funds” of size US$ 20 Mil -100 MilEach fund to have Govt. share from 25% - 75%; remaining from private and financial institutionsELECTRONICS INDIABillion Needs, Million Chips
29Billion Needs, Million Chips Mandating standardsOrder comes into effect fromApril 3, 201315 electronics products notified under safety standards on October 3, 2012Allows Self registrationBIS accredited labs to test the goodsELECTRONICS INDIABillion Needs, Million Chips
30Billion Needs, Million Chips Export IncentivesExport Incentives on FOB ValueFocused Product Scheme -2% duty credit scriptSpecial Focused Product Scheme-5% duty credit scriptFocused Market Scheme2-5%ELECTRONICS INDIABillion Needs, Million Chips
31Billion Needs, Million Chips HR InitiativesPhDs in Electronics by 20202500 annuallyElectronics and Telecom Sector Skill Council set up31 ICT and Electronics Academies-Scheme under approvalSkill Development for 1 mn personsSpecial Manpower Development Programme- Phase III for VLSI and chip design for 10,000 students .ELECTRONICS INDIABillion Needs, Million Chips