The ESDM sector ranks high among the various segments of Indian industry propelling the economic growth and multiplication of job opportunities in the country. Over the last couple of decades India has been the epicenter of consumer demand fuelled by a phenomenal GDP growth. While demand increased across all sectors, demand for high technology products, specifically electronic products has registered significant growth and going by current estimates, the demand for electronics hardware in the country is projected to increase from US$ 45 billion in 2009 to US$ 400 billion by 2020. In order to provide an overview of the domestic ESDM sector as well as the opportunities and challenges for MSMEs engaged in this sector, CII organized a policy dialogue session on the “Emerging Business Opportunities for Indian MSMEs in the ESDM sector” on 19 March, 2014.
As part of an overview of the sector, this background document elaborates on the composition of the domestic ESDM industry which includes electronic products, electronic components, semiconductor design services and electronics manufacturing services. Additionally, the paper also discusses key highlights of the National Policy on Electronics which is geared to create fresh growth opportunities for ESDM enterprises operating in the country. Reflecting on the emerging trends in the ESDM sector, the document expounds on various government incentives as well as opportunities for Indian MSMEs in the ESDM sector through sustainable and expansive participation.