Few economies have only exhibited the strength to weather the harsh conditions prevailing in the global environment. India, despite its temporary slowdown in 2012 – 2013, has not only withstood the adverse environment, but has also been witnessing green shoots of recovery.
The growth trends indicate that the Indian ESDM industry enjoys almost twice the CAGR (Compounded Annual Growth Rate) of the global industry.
Although the electronics product market is growing a very fast pace, ironically most of the demand is being fulfilled by imports. Reliance on imports continues to be high, with 65% of the demand for electronics products being met by imports. In the absence of policy interventions, imports are likely to grow from USD 28 billion in 2011 to USD 42 billion in 2015.
The growth potential of the services component will be determined to a great extent by India’s ability to undertake higher value add activities and cost competitiveness. High value added manufacturing is estimated to decline to 6.7% in 2015 resulting in a cumulative opportunity loss of USD 200 billion during 2011-2015.
The next few years will be crucial for the growth and development of the ESDM industry in India. The ESDM Industry must now focus on the areas where India can increase self-reliance, create and leverage intellectual property assets and the high design capability found in India to develop unique global products for and from India.
On the other hand, the Indian semiconductor design industry has evolved into a developed and self-sustaining ecosystem. By 2005, the industry saw around 38 captive design units set up in India, with focus shifting towards product and design innovation.
Today, with more than 120 design units, India accounts for 5.1% of the global semiconductor industry. Growing at a CAGR of 17.3% since 2009, the industry consisting of embedded software development, VLSI design and board/hardware design is expected to have reached revenues of $10.6 billion in 2012.
Electropreneur Park is conceived to emphasize on Development of Product and IP creation in the ESDM sector especially in the CAREL identified 6 mass consumption electronics products.
Learn more about EP at http://electropreneurpark.com