Will India’s ESDM Market Reach Rs 7-8 Lakh Crore by 2030?
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Synopsis
Discover how India's ESDM sector is on track to double, reaching a remarkable Rs 7-8 lakh crore by 2030. This growth is driven by the booming smartphone market and supportive government policies, making India a global hub for electronics manufacturing.
Key Takeaways
- India's ESDM market is projected to reach Rs 7-8 lakh crore by 2030.
- The smartphone segment contributes 62% to the overall market.
- India has transitioned from being import-dependent to producing 99% of its smartphones.
- Government policies are crucial for boosting domestic manufacturing.
- Annual smartphone shipments are expected to exceed 325 million by FY25.
New Delhi, Oct 3 (NationPress) India’s electronics system design and manufacturing (ESDM) sector is poised for tremendous growth in the upcoming years, with projections indicating that the market will double to reach Rs 7-8 lakh crore by 2030, according to a recent report released on Friday.
The industry is anticipated to grow at a remarkable CAGR of 20-25 percent over the next five years, fueled by a robust demand for smartphones, consumer electronics, and automotive electronics, as noted in a report by CareEdge Ratings.
The smartphone sector has become the cornerstone of India’s ESDM landscape, accounting for an impressive 62 percent of the total market share in FY25.
From FY20 to FY25, this segment has witnessed a vigorous CAGR of 28 percent, driven by increasing disposable incomes, enhanced smartphone adoption, and broader access to smart devices in both urban and rural regions.
Looking ahead, the segment is expected to sustain a growth rate of 23-25 percent CAGR during FY25-30, establishing itself as the principal driver of both volume increase and technological innovation within the sector, according to the report.
Over the past decade, India’s smartphone manufacturing ecosystem has experienced a significant transformation.
The country has shifted from a state of heavy reliance on imports to now producing nearly 99 percent of the smartphones sold within its borders.
The manufacturing value has surged from Rs 18,900 crore in FY14 to an impressive Rs 4,22,000 crore by FY24.
Annual smartphone shipments have consistently exceeded 150 million units, with projections indicating that India will manufacture between 325-330 million smartphones annually by FY25.
Additionally, exports have seen a dramatic rise, now representing over 36 percent of production, compared to just 8 percent in 2015, as highlighted in the report.
The report emphasizes that supportive policies and global trends are crucial in this transformation.
Government initiatives such as the Production Linked Incentive (PLI), SPECS, ECMS, and the Phased Manufacturing Programme (PMP) are facilitating a strong push towards domestic manufacturing and component production.
The number of smartphone manufacturing facilities has expanded from just two in 2014 to over 300 in 2024, attracting both global and domestic investments.
This policy framework, combined with growth driven by technologies like AI, IoT, and electric vehicles, positions India as a competitive global hub for high-value electronics manufacturing.
Point of View
It is imperative to acknowledge the rapid evolution unfolding in India’s ESDM sector. This growth not only signifies economic opportunity but also reinforces India’s position on the global electronics stage. The government’s strategic policy support ensures that this momentum is sustainable, fostering innovation and enhancing competitiveness in the market.
NationPress
03/10/2025
Frequently Asked Questions
What is the expected growth rate of India's ESDM market?
India's ESDM market is anticipated to grow at a CAGR of 20-25 percent over the next five years.
What percentage of smartphones sold in India are manufactured domestically?
Currently, India produces nearly 99 percent of the smartphones sold within the country.
How much value has India's smartphone manufacturing increased since FY14?
The manufacturing value has risen from Rs 18,900 crore in FY14 to Rs 4,22,000 crore by FY24.
What role do government policies play in the ESDM sector?
Government initiatives like the PLI and PMP are critical in promoting domestic manufacturing and driving growth in the sector.
How many smartphone manufacturing units are there in India now?
The number of smartphone manufacturing units in India has grown from just two in 2014 to over 300 in 2024.
