INDUSTRY ANALYSIS PROJECT

ON

ELECTRONICS SYSTEM DESIGN &

MANUFACTURING
EFFORTS BY : Indresh Ghansiyal pgmb2115
Satyam Srivastava pgmb2140
Amay Kutariyar pgmb2105
Isha Mathur pgmb2116
Subah Prakash pgmb2150
Vishal Sammal pgmb2157
 INTRODUCTION
India is growing to become one of the biggest markets for electronic
instrumentation. The main factor for boom in electronic industry in
India is the growth in market demand.

BEFORE THE 1980S INDUSTRY WAS PRIMARILY

GOVERNMENT OWNED BUT LATER THERE WAS A
SPIKE IN THE INDUSTRY DUE TO VAST ECONOMIC
CHARGES RESULTING IN LIBERALIZATION AND
GLOBALIZATION.

By 1980s, the market was confined to transistors, black and white

TV Calculators etc. But arrival of color TV, computers or digital
telephone exchanges ,increase in foreign investment, increased
demand & penetration of electronic products.

Rapid growth in demand of electronic products as India become the 2nd largest mobile phone
manufacturer and in internet streaming rate. Indian Govt. gave high priorities to electronics
manufacturing for Make in India, Digital India. Electronics System Design & Manufacturing (ESDM)
played role in the Govt’s aim of generating around US$ 1 trillion of economic value by 2025.
 Consumer profiling
• Students & professionals: To perform their duties and to make
their life easy.

• Households: Electronics items are used in households to save

time and for living in a comfort life.

• Industry & Factories: To run the firm smoothly

• Other consumers: electronic devices has a very vast variety

and are used by every common people to do different things.
 Supply Chain
• Offline
Manufacture> agent> wholesaler> distributer> trading co.>
brokers> dealer>customer

• Online
Supplier> new intermediaries> customer
COMPETITIVE
LANDSCAPE
 FOREIGN DIRECT INVESTMENT
(FDI) POLICY
 FOREIGN DIRECT INVESTMENT REFERS TO THE INVESTMENT FROM
A PARTY IN ONE COUNTRY INTO A BUSINESS OR CORPORATION IN
ANOTHER COUNTRY WITH THE INTENTION OF ESTABLISHING A
LASTING INTEREST.
 POLICIES REFLECTS THE GUIDELINES BY GOVERNMENT A
COMPANY HAS TO FOLLOW WHILE INVESTING ON A COMPANY.
 FOREIGN DIRECT INVESTMENT (FDI) POLICY, FDI UP-TO 100%
PERMITTED FOR ELECTRONICS MANUFACTURING.
 GDP CONTRIBUTION
 THE ROLE OF ELECTRONICS AND HARDWARE INDUSTRY IN INDIA
GDP IS TO ENSURE THE GROWTH OF THE OTHER INDUSTRIES AND
CONTRIBUTE TO THE GROWTH OF THE INDIAN ECONOMY. THE
ELECTRONICS AND HARDWARE INDUSTRY DEPENDS ON THE
MANUFACTURING OF THE SEMICONDUCTORS.

 THE ELECTRONIC SECTOR CONTRIBUTES 2.7% TO THE ECONOMY

WHICH IS APPROX. TO $ 200 BILLION DOLLARS.

 EXPECTED TO BE 8.8% BY 2025 TO $ 410 TRILLION DOLLARS.

OVERALL MARKET SHARE

• ELECTRONICS MARKET HAS WITNESSED A GROWTH IN DEMAND WITH MARKET SIZE

INCREASING FROM US$ 145 BILLION IN FY16 TO US$ 215 BILLION IN FY19—THE MARKET
WITNESSED A GROWTH OF 14% CAGR FROM 2016-19.

• INDIA’S EXPORTS OF ELECTRONIC GOODS WERE VALUED AT US$ 11.7 BILLION IN FY21.
IN MAY 2021, EXPORTS OF ELECTRONIC GOODS WERE VALUED AT US$ 950.17 MILLION.

• IN INDIA, SMARTPHONE SHIPMENTS REACHED 150 MILLION UNITS AND 5G

SMARTPHONE SHIPMENTS CROSSED 4 MILLION IN 2020, DRIVEN BY HIGH CONSUMER
DEMAND POST-LOCKDOWN.

• IN FY20, IMPORTS ACCOUNTED FOR US$ 50 BILLION, WHEREIN CHINA AND HONG KONG
ACCOUNTED FOR ~US$ 28 BILLION, OR ~57% OF INDIA’S TOTAL ELECTRONIC IMPORTS.
 MARKET SHARE
• Electronics design segment, growing at 20.1%, was 22% of the ESDM market size in FY19; it is anticipated
to be 27% of the ESDM market size in FY25.

• In FY20, the production value of mobile devices reached US$ 30 billion from US$ 3 billion in FY15

• The consumer electronics and appliances industry in India is expected to become the fifth largest in the world
by 2025.

• The electronics manufacturing services industry in India is projected to reach US$ 152 billion by 2025.
 INVESTMENTS
• The government has set a target to get ~Rs. 18,000 crore (US$ 2.4 billion) investments in the electronics
manufacturing segment by 2021-22.

• In January 2021, Panasonic Life Solutions India, a wholly-owned subsidiary of Panasonic Corporation, announced
that it will invest Rs. 600 crore (US$ 82.34 million) to set a up a new electrical appliances manufacturing facility in
Sri City, Andhra Pradesh.

• In April 2021, Japanese electronics brand AIWA, which registered its India subsidiary in February 2021, is
relaunching with five products in the TWS (True Wireless Stereo) and audio segments at a total investment outlay of
US$ 10 million for Phase-1 of operations.

 In July 2021, C4V, a lithium-ion cell manufacturer in the US, invested >US$ 537.15 million in the electric battery
manufacturing sector in Karnataka.
 RELATIVE PROFITABILITY
• The government has made electronics production as a vital pillar of many initiatives such as 'Make in
India', 'Digital India' and 'Start-up India'. The ESDM sector holds a position of crucial importance in
the government's goal of generating US$ 1 trillion of economic value from the digital economy by
2025.
 TECHNOLOGICAL INTERVENTION
• ADVANCED ROBOTS
• In 2017, there was an estimated 1.8 million active robots in production roles
• It is responsible for only 10% of production, these advanced robots are projected to be
responsible for 25-45% by 2030
• Their ability to execute precise actions
• Artificial intelligence
• IoT (internet of things) continues to increase machine and
device connectivity
• Which enables artificial intelligence (AI) to continue
growing
• Household appliance manufacturers are integrating their
products with the IoT technology
• Example- Amazon and LG

• Virtual Reality
• Adopted by electronic manufacturing companies to improve manufacturing efficiency
• Used for digital design, simulation, and integration
• The growth rate of electronic equipment market globally is 5.2% according to TBRC, virtual
reality has a big implementation scope.
 PREDICTIVE MAINTENANCE

• Most machines involved in the line are outdated and greater chance of failing
• In a time-stressed industry, production halts affect the line
• Sensors are being used for improving efficiencies and reducing potential breakdowns
GOVERNMENT POLICIES AND LEGAL POLICIES RELATED TO ELECTRONIC INDUSTRY
NATIONAL POLICIES
1- NATIONAL POLICY ON ELECTRONICS 2019 –
THE NATIONAL POLICY ON ELECTRONICS AIMS AT POSITIONING INDIA AS A GLOBAL HUB FOR
ELECTRONICS SYSTEM DESIGN AND MANUFACTURING BY CREATING AN ENABLING
ENVIRONMENT FOR THE INDUSTRY TO COMPETE GLOBALLY.

FEATURES OF NATIONAL POLICY ON ELECTRONICS

• PROMOTING INDUSTRY-LED R&D AND INNOVATION IN ALL SUB-SECTORS OF ELECTRONICS

SUCH AS 5G, INTERNET OF THINGS OR SENSORS, MACHINE LEARNING, VIRTUAL REALITY (VR),
ARTIFICIAL INTELLIGENCE (AL).

• BUILDING SPECIAL THRUST ON CHIP DESIGN INDUSTRY, AUTOMOTIVE ELECTRONICS

INDUSTRY, MEDICAL ELECTRONIC DEVICES INDUSTRY AND POWER ELECTRONICS FOR
MOBILITY AND STRATEGIC ELECTRONICS INDUSTRY

STRATEGIES OF NPE

• PROMOTION OF THE CHIP DESIGN INDUSTRY

• PROMOTION OF ELECTRONICS INDUSTRY AND POWER ELECTRONICS FOR MOBILITY

• PROMOTION OF ELECTRONICS MANUFACTURING SERVICES INDUSTRY

• PROMOTION OF ASSEMBLY, TESTING, MARKETING AND PACKAGING INDUSTRY

2- The National Digital Communications Policy, 2018 -

The new National Digital Communications Policy -2018 will replace the existing National Telecom Policy-2012,
to cater to the modern technological advancements such as 5G, IoT, M2M etc. in the Telecom Sector.

Features of National Digital Communications Policy –

NDP three main missions are-

• Connect India: Creating Robust Digital Communications Infrastructure To promote Broadband for All as a tool
for socio-economic development

• Propel India: Enabling Next Generation Technologies and Services through Investments, Innovation and IPR
generation To harness the power of emerging digital technologies, including 5G, AI, IoT, Cloud and Big Data to
enable provision of future ready products and services

• Secure India: Ensuring Sovereignty, Safety and Security of Digital Communications To secure the interests of
citizens and safeguard the digital sovereignty of India with a focus on ensuring individual autonomy and choice,
data ownership, privacy and security; while recognizing data as a crucial economic resource.

Strategies-

1. Provisioning of Broadband for All

2. Creating 4 Million additional jobs in the Digital Communications sector
3. Enhancing the contribution of the Digital Communications sector to 8% of India’s GDP from ~ 6% in
2017.
State Policies
1-UP New Electronic Manufacturing Policy 2020
Uttar Pradesh state government has announced Electronic Manufacturing Policy 2020 in order to invite investment of Rs.
40,000 crores in the next five years as well as to generate four lakh direct employment in the state.

• Key Highlights:
• Uttar Pradesh accounts for more than 60 per cent of all the mobile phones manufactured in India.
• Yamuna Expressway, Noida, Greater Noida have also been established as one of the emerging mobile manufacturing
hubs attracting Foreign Direct Investment (FDI) from many countries.

• The incentives proposed in the new policy will be applicable to all the units setting up their bases anywhere in UP.
• To address the problem of regional imbalance, investors have been provided with double the rate of land subsidy to set
up the manufacturing units in Paranuchal regions and Bundelkhand.
2- Information technology and electronic policy of Assam-

• To transform Assam into a sustainable and innovative society of excellence in ICT with focus on enhancing the quality
of governance for the benefit of common citizens through digital empowerment and deployment of emerging
technology.
Key Highlights
• Promotion of IT/ITeS/ESDM Industry:
• i) Create enabling environment for growth of IT, ITeS and Electronics Manufacturing industries by providing
• attractive fiscal and non-fiscal incentives at par with other advanced states of the country.
• ii) To create opportunities for the qualified youths of the State to get meaningful employment in the IT/ITeS/ESDM
• sectors of the State.
• E-Services:
• i) Ensure electronic delivery of services to citizens and business, across all departments, to achieve the objective of
• transparency and efficiency.
• ii) Enable "SMART" (Simple, Measurable, Accountable, Responsive and Transparent) governance through digital
• work flow and automation systems.
• E-Governance:
• i) Develop core ICT infrastructure for delivery of e-services and promote the use of ICT in governance.
• ii) Provide broadband connectivity to all Government offices up to blocks/gram Panchayats/villages by 2022.
• iii) Promote and set up critical ICT infrastructure such as communication networks, IT Parks, Incubation Centers
• and peripheral services through Government and private partnerships.
• E-Transformation:
• i) Re-engineer the government processes to suit the delivery of electronic services.
• ii) Put in place programmes and schemes in IT sector, both in terms of employment and entrepreneurship.
 INDUSTRY FORECASTING
• The world’s fastest-growing industry, Electronics System Design and Manufacturing (ESDM)
• The global electronics market is estimated to be over $2 TN
• India’s share has grown from 1.3% in 2012 to 3.6% in 2019
• The global relays market has a value of nearly $29,265.8 million in 2019, and increased at a compound annual
growth rate (CAGR) of 6.0% since 2015.

• The market is expected to decrease from $29,265.8 million in 2019 to $27,416.7 million in 2020 at a rate of -6.3%
due to COVID-19 breakout.

• The market is expected to recover and grow at a CAGR of 9.8% from 2021 and reach $34,423.4 million in 2023.
Estimated growth rates for the global electronics industry from 2019 to 2021, by region
• The electronics industry in the Asia is expected to grow by around
seven percent year-on-year
• The market contracted by one percent due to COVID-19
• Asia the highest growth rate then Europe and America

• Changes in Technology
• The total revenue generated from IoT industry would be
USD 300 billion
• India would have a share of 5-6% of the global IoT industry.
• Mobile Devices is one of the key segments where growth is
expected
• Smart Living is another opportunity for ESDM Sector
 SWOT ANALYSIS
STRENGTHS
 LARGE CONSUMER BASE
 THIRD LARGEST START-UP ECOSYSTEM
 ROLLOUT OF 5G, AND INDUSTRIAL USE OF INTERNET OF THINGS (IOT) TECHNOLOGY
 MAKE IN INDIA” AND “DIGITAL INDIA” INITIATIVES
 ROBUST RESEARCH & DEVELOPMENT (R&D) ECOSYSTEM
WEAKNESSES
 OPERATING AT THE LOWER END OF MANUFACTURING
 WEAK INFRASTRUCTURE
 LARGE GREY MARKETS OF ILLEGAL PRODUCTS
 LOW MANPOWER FOR PRODUCING ELECTRONIC COMPONENTS
OPPORTUNITIES
 FDI POLICY
 EMC 2.0 SCHEME, PRODUCTION LINKED INCENTIVE SCHEME
 INDIAN TAIWAN CHIP PLANT TRADE DEAL
 PIAGGIO SETS UP FIRST EV FACILITY IN CHENNAI
 AC MAKER DAIKIN TO SET UP THIRD MANUFACTURING UNIT IN INDIA AT ANDHRA
PRADESH

THREATS
 COUNTRIES SHARING LAND BORDER WITH INDIA
 ECONOMIC RECESSION
 UNCERTAIN DEMAND
 CYBER THEFT OR ATTACKS