Make In India

Electronic Systems Sector Overview

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India’s Electronic Systems sector, valued at ₹14.2 trillion in 2023-24, is a key pillar of technological innovation and industrial growth. The sector includes consumer electronics, industrial automation, defense electronics, medical devices, and IoT solutions. Strong government support and rising domestic demand are accelerating its expansion.

Why Invest in the Electronic Systems Sector

  • Market Growth: India targets $400 billion in electronic system design and manufacturing (ESDM) by 2026
  • Government Support: Incentives under PLI, SPECS, and EMC 2.0 to boost production.
  • Technological Advancement: Growth in AI, IoT, automation, and semiconductor applications.

Incentives & Schemes

  • PLI Scheme for Electronics: ₹40,951 crore to boost electronic system manufacturing.
  • SPECS (Scheme for Promotion of Electronics Components and Semiconductors): ₹3,285 crore for component manufacturing.
  • EMC 2.0: ₹3,762 crore to develop electronics manufacturing clusters.

Highlights

  • IoT & AI Adoption: Rapid adoption of AI and IoT in industrial automation and smart devices.
  • Defense & Medical Electronics Growth: Increased localization in defense and healthcare technologies.
  • FDI-Friendly Policies: 100% FDI under the automatic route for electronic system manufacturing.

Electronic Systems Sector Data

Category Details
Market Size (2023-24) ₹14.2 trillion
PLI Allocation ₹40,951 crore
SPECS Fund ₹3,285 crore
EMC 2.0 Investment ₹3,762 crore
IoT & Smart Devices Growth CAGR of 19% (2023-2030)
Electronic Exports (2023) $30 billion
Defense Electronics Growth 22% YoY increase
Medical Electronics Market (2024) ₹2.5 trillion
Employment Generation 2.5 million+ direct jobs by 2026
Target Market by 2026 $400 billion

Latest Figures and Progress

  • IoT & Smart Devices Expansion: The sector is witnessing 19% CAGR, with major investments in AI-driven and IoT-enabled systems.
  • Electronics Export Surge: India’s electronic exports touched $30 billion in 2023, showing strong global demand.

India’s Electronic Systems sector is growing rapidly with a focus on innovation, localization, and global competitiveness. Government incentives and technological advancements are driving the sector toward self-reliance and international leadership.