India's ESDM market to double to Rs 7-8 lakh crore by 2030: Report

New Delhi, Oct 3 (IANS) India’s electronics system design and manufacturing (ESDM) industry is set to witness massive growth in the coming years, with the market expected to double and touch Rs 7-8 lakh crore by 2030, a new report said on Friday.

The industry is likely to expand at a rapid CAGR of 20-25 per cent over the next five years, driven by strong demand for smartphones, consumer electronics, and automotive electronics, according to a CareEdge Ratings report.

The smartphone segment has emerged as the backbone of India’s ESDM industry, contributing 62 per cent of the overall market in FY25.

Between FY20 and FY25, the segment grew at a robust CAGR of 28 per cent, supported by rising incomes, deeper smartphone adoption, and wider penetration of smart devices across cities and smaller towns.

“Going ahead, the segment is projected to grow at 23-25 per cent CAGR during FY25-30, cementing its role as the primary engine of both volume growth and technological advancement within the industry,” the report said.

India’s smartphone manufacturing ecosystem has undergone a remarkable shift over the past decade.

From being heavily import-dependent, the country now produces nearly 99 per cent of the smartphones sold domestically.

The manufacturing value has jumped from Rs 18,900 crore in FY14 to Rs 4,22,000 crore in FY24.

Annual shipments have consistently crossed 150 million units, with India producing over 325-330 million smartphones annually by FY25.

Exports too have risen sharply, accounting for over 36 per cent of production, compared to just 8 per cent in 2015, the report said.

The report highlights that policy support and global shifts are playing a critical role in this transformation.

Government schemes like the Production Linked Incentive (PLI), SPECS, ECMS, and the Phased Manufacturing Programme (PMP) have created a strong push for domestic manufacturing and component production.

The number of smartphone manufacturing units has expanded from just two in 2014 to over 300 in 2024, attracting significant global and domestic investments.

This policy push, combined with technology-led growth in areas such as AI, IoT, and electric vehicles, is positioning India as a competitive global hub for high-value electronics manufacturing.

--IANS

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