Draft Project Report on “Electronics Development Fund” (EDF)

India has become a global power house in software and software services sector.

However, it lags behind in Electronics Systems Design and Manufacturing (ESDM) capabilities. The objective to transform India into a global destination in electronics goods, to meet the fast-increasing domestic demand and global demand. However, there are multiple challenges such as inadequate infrastructure, tax structure, supply chain and logistics, inflexible labor laws, limited R&D focus, funding, limited value addition focus and exports.

Electronics, reported at USD 1.75 Trillion is the largest and fastest growing manufacturing industry in the world. It is expected to reach USD 2.4 Trillion by 2020. The demand in the Indian market was USD 45 Billion in 2008-09 and is expected to reach USD 400 Billion by 2020. The growth of domestic production at a CAGR of 22% is expected to be driven by surge in income levels, the aspiration value of electronics goods, the demand from resurgent corporate sector and the government‟s focus on e-governance. The domestic production in 2008-09 was about USD 20 Billion. However, the gross Manufacturing Value Addition was very low, anecdotally between 5 to 10 percent. This implies that out of the demand of USD 45 Billion, between USD 1-2 Billion was value added in the country and rest was imported Unless the situation is corrected, it may be that by 2020, the electronics import may exceed oil imports.

Read completed Draft Project Report on “Electronics Development Fund” (EDF)

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