India to top the ranking in exports

The electronic system design and manufacturing (ESDM) sector in India will play a major role in the country's overall growth, from sourcing components to design manufacturing, a report mentioned. This will make India the second largest market after China in terms of scale and growing demand for semiconductor components.

India's semiconductor component industry is expected to exceed $300 billion by 2026, as "Make in India" and production-linked incentive initiatives enhance local sourcing of semi-components in the coming years. Mobile and wearables, IT, and industrial categories now account for over 80% of the country's semiconductor revenues in 2021.

Amongst the key products that are expected to lead India’s growth in electronics manufacturing include Mobile Phones, IT Hardware (laptops, tablets), Consumer electronics (TV and audio), Industrial electronics, Auto electronics, electronic components, LED Lighting, Strategic electronics, PCBA, Wearables and hearables, and Telecom equipment.

Mobile manufacturing that is expected to cross US$100 billion annual production - up from the current US$30 billion - is expected to constitute nearly 40% of this ambitious growth.

The demand for Mobile and wearable devices currently account for 51% of the semiconductor revenue in India, followed by IT (20%), industrial (9%), consumer electronics (7%) and telecom and automotive (5% each).

India is poised to be the second largest market in the world from the perspective of scale and growing demand across industries and applications. This demand is being pushed by the increasing pace of digital transformation among consumers, enterprises and the public sector through the adoption of new technologies, from advanced connectivity to content consumption to the cloud.

This consumption will not only come from the advanced semiconductor-heavy 5G and FTTH network infrastructure equipment, which will contribute to more than 14 percent of the total semiconductor consumption in 2026 but also from the highly capable AI-driven 5G endpoints, from smartphones, tablets, PCs, connected cars, industrial robotics to private networks

The domestic market is expected to increase from $65 billion to $180 billion over the next 5 years. This will make electronics amongst India’s 2-3 top ranking exports by 2026. Of the $300 billion, exports are expected to increase from the projected $15 billion in 2021-22 to $120 billion by 2026.

S Mohini Ratna, Editor, VARINDIA