Electronics System Design & Manufacturing (ESDM) In India
- swapnil kumbhar
- Jun 29
- 7 min read
Updated: 17 hours ago
The Indian Electronics System Design & Manufacturing (ESDM) sector.
Driving Growth in PCB Manufacturing and Electronic Manufacturing is one of the fastest-growing sectors in the Indian economy, witnessing robust expansion driven by increasing demand for electronic products and rising digital penetration. India has emerged as a key destination for electronic manufacturing in India, attracting global PCB manufacturing companies and electronics manufacturers to set up operations locally. Government is build India as Bharat Electronic in terms of manufacturing.
Why India is Becoming a Hub for Electronic System Design & Manufacturing and PCB Manufacturing
The Electronics System Design & Manufacturing ESDM market in India is internationally recognized for its high consumption potential and consistent growth. With India now ranked as the second-largest mobile phone manufacturer globally, coupled with the surge in internet penetration, the demand for PCBs and electronic hardware products has increased significantly, fueling the PCB manufacturing India market.
Global electronics companies are shifting focus towards Bharat (India), aiming to develop local capacities for PCB manufacturing and electronic assembly. This shift is driven by India’s evolving electronics design and manufacturing capabilities and competitive cost structures, enabling companies to serve not only the domestic market but also export to global markets.
The Electronics System Design & Manufacturing (ESDM) industry in India includes a wide range of electronic hardware products and components across sectors such as:
Information Technology (IT)
Telecom
Consumer electronics
Aviation and aerospace
Defence
Solar photovoltaic
Nano electronics
Medical electronics
Additionally, the industry covers design-centric activities like chip designing, product designing, Very Large-Scale Integration (VLSI), PCB board designing, and embedded systems development.
As India prioritizes PCB manufacturing and electronics manufacturing under the Make in India, Digital India, and Start-up India initiatives, the government has rolled out various policies and incentives to strengthen local production. These initiatives are aligning with the government’s vision to generate US$ 1 trillion economic value from the digital economy by 2025.
Growth Opportunities for PCB Manufacturing India
India’s electronics sector has witnessed a significant uptick in PCB manufacturing and assembly activities, particularly in mobile phones and consumer electronics, positioning the country as a rising hub for high-quality PCB manufacturing.
As the demand for electronic products continues to surge, the PCB industry in India is evolving with advanced manufacturing facilities, skilled workforce availability, and supportive government policies to boost local manufacturing.
India’s Electronics System Design & Manufacturing (ESDM) Sector: Poised to Hit $520 Billion by 2025
India’s Electronic System Design and Manufacturing (ESDM) sector is on a meteoric rise, positioning the country as a global powerhouse in electronics manufacturing. With a projected market size of US$520 billion by 2025, India’s electronics industry is fueled by robust domestic demand, strategic government initiatives, and a thriving export market. Here’s why India’s ESDM sector is a game-changer for global electronics and how it’s transforming the nation into a manufacturing hub.
Skyrocketing Demand for Electronics in India
The appetite for electronic products in India is surging, with demand expected to soar from US$33 billion in FY20 to US$400 billion by FY25. The electronics system market is set to grow 2.3x from FY19 levels, reaching US$160 billion by FY25. Key growth segments include:
IT and Office Automation: Projected to grow at a staggering 54% CAGR, driven by digital transformation.
Industrial Electronics: Expected to expand at a 38% CAGR, catering to smart manufacturing needs.
Automotive Electronics: Anticipated to grow at a 10% CAGR, fueled by the rise of electric vehicles and smart mobility.
This explosive growth creates immense opportunities for PCB manufacturing and electronics manufacturing in India, making it a hotspot for investors and businesses.
India’s electronics exports are witnessing unprecedented growth, reaching US$29.11 billion in FY24, up from US$23.57 billion in FY23. With a target of US$120 billion in exports by 2025-26, India is rapidly becoming a key player in the global ESDM supply chain, offering high-quality electronic goods to markets worldwide.
India: A Global Leader in Chip Design & Embedded Systems
As one of the largest consumer electronics markets in the Asia-Pacific, India is home to a vast pool of talent in electronic chip design and embedded systems. This expertise strengthens India’s position in the global ESDM landscape, making it a preferred destination for companies looking to innovate and scale. The country’s goal of achieving US$300 billion in electronics manufacturing by 2025-26 underscores its commitment to becoming a global ESDM leader.
Government Initiatives Powering ESDM Growth
India’s government is leaving no stone unturned to bolster the ESDM sector. Key initiatives like Digital India, Make in India, and the Production Linked Incentive (PLI) scheme are driving investment and simplifying the process of setting up electronics manufacturing units. A favorable FDI policy further enhances India’s appeal, enabling companies to establish and expand operations with ease. These policies are supercharging PCB manufacturing and electronics production, fostering innovation and scalability.
Why India’s ESDM Sector is a Golden Opportunity
With a perfect blend of government support, skilled talent, and soaring demand, India’s ESDM sector is a goldmine for businesses and investors. Whether you’re looking to tap into electronics manufacturing, PCB production, or embedded systems design, India offers unmatched potential for growth and profitability.
Ready to explore opportunities in India’s booming ESDM sector? Stay ahead of the curve and join the revolution shaping the future of global electronics manufacturing!
Government Initiatives Driving India’s ESDM Sector to Global Leadership
India’s Electronic System Design and Manufacturing (ESDM) sector is experiencing unprecedented growth, propelled by robust government initiatives, strategic policies, and substantial investments. These efforts are transforming India into a global hub for electronics manufacturing and positioning it as a leader in the ESDM industry. From Production-Linked Incentive (PLI) schemes to semiconductor manufacturing and startup ecosystems, here’s how India is revolutionizing its ESDM landscape.
Powering ESDM Growth with Production-Linked Incentive (PLI) Schemes.
The Indian government is turbocharging the ESDM sector through its Production-Linked Incentive (PLI) schemes, injecting Rs. 1,596 crore (US$184.33 million) in the first half of FY25 across electronics, pharmaceuticals, and other industries. Specifically, the PLI scheme for IT hardware is set to disburse US$983.76 million over the next four years, targeting US$21.62 billion in production and US$8.06 billion in exports.
With 80% of PLI investments directed toward electronics, automobiles, and solar panel production, the government is prioritizing the electronics manufacturing ecosystem, fostering job creation, and boosting India’s global competitiveness in the ESDM market.
India’s Bold Leap into Semiconductor Manufacturing
India is making significant strides to become a semiconductor manufacturing hub. In March 2024, Prime Minister Narendra Modi laid the foundation for three semiconductor plants, backed by an investment of over Rs. 1.25 lakh crore (US$15.02 billion). The Scheme for Promotion of Semiconductor Eco-System, with an outlay of Rs. 76,000 crore (US$9.48 billion), is driving India’s ambition to lead in chip design and semiconductor production.
Additionally, India is fostering global partnerships, including discussions with Taiwan for a US$7.5 billion semiconductor facility to produce chips for 5G devices and electric vehicles. This initiative addresses the global semiconductor chip shortage and strengthens India’s position in the global ESDM supply chain.
Budget Allocations Boosting Electronics Manufacturing
The Indian government is backing its ESDM vision with significant budget allocations. The Union Budget 2023-24 allocated Rs. 16,549 crore (US$2 billion) to the Ministry of Electronics and Information Technology (MeitY), a 40% year-on-year increase. Similarly, the Union Budget 2022-23 committed Rs. 14,300 crore (US$1.85 billion) to bolster electronics and digital infrastructure.
The Digital India programme, with an allocation of Rs. 6,806 crore (US$936.19 million), is streamlining the ease of doing business for electronics manufacturing in India, making it an attractive destination for global companies and investors.
Fostering Innovation and Startup Ecosystems in ESDM
India is nurturing a vibrant ESDM ecosystem through targeted initiatives to promote innovation and entrepreneurship:
The Future Skills Summit (February 2024) focused on building ESDM talent and upskilling the workforce to meet industry demands.
The National Policy on Electronics (NPE) 2019 aims to establish India as a global ESDM hub by enhancing capabilities in chipset manufacturing and core component development.
The MeitY Startup Hub (MSH), in collaboration with Meta, launched an XR technology accelerator program to support startups in cutting-edge technologies.
Partnerships like the MoU between IIT Indore and the Confederation of Indian MSME in ESDM are providing technological support and knowledge sharing for startups and SMEs in the ESDM domain.
Additional Initiatives Shaping India’s ESDM Future
The government’s commitment to the ESDM sector extends beyond traditional electronics manufacturing:
The National Programme on Advanced Chemistry Cell (ACC) Battery Storage, with a Rs. 18,100 crore (US$2.47 billion) outlay under the PLI scheme, is boosting domestic battery manufacturing for electric vehicles and renewable energy.
A quantum computing applications lab, launched by MeitY in partnership with Amazon Web Services (AWS), is advancing research and development in cutting-edge technologies.
Strategic collaborations with global leaders are establishing semiconductor and electronics manufacturing infrastructure, reinforcing India’s role in the global supply chain.
Why India’s ESDM Sector is a Global Opportunity
With forward-thinking government policies, significant financial incentives, and a focus on innovation and skilling, India’s ESDM sector is poised for exponential growth. Whether you’re an investor, manufacturer, or startup, India offers unparalleled opportunities in electronics manufacturing, semiconductor production, and embedded systems design.
Join the revolution and explore how India’s ESDM industry is shaping the future of global electronics manufacturing!
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