ESDM sector to grow at 9.9%: ISA-F&S Report

The Electronics Systems Design and Manufacturing (ESDM) is one of the few sectors that helped India weather the economic slowdown in 2012. Given the pace it has performed and it is doing at present, an ISA - Frost & Sullivan Report has predicted that the ESDM industry in India is expected to grow at a Compounded Annual Growth Rate (CAGR) of 9.9 % between 2011 and 2015. As a result this will be market of $94.2 bn by 2015.

The report outlines that "the ESDM sector ranks high among the various segments that have contributed to creating this bulwark. The ESDM industry in India has continued to chart its journey northwards. While the industry may not have achieved the exponential growth forecast by experts, its performance in the last few years can be termed an achievement in view of the overall slowdown of the Indian economy."

However, the report clearly raises worries on rising imports in this sector. "The growth potential of the services component will be determined to a great extent by India's ability to undertake higher value-add activities and cost competiveness." Hence it insists on resolute focus on the ESDM industry and favorable policies to incentivize investment, adoption of new technologies which can catalyze innovation and entrepreneurship and enhance skills to address the disability cost of developing ESDM products domestically.

It is noteworthy that the government is trying to attract investors and companies to set up manufacturing plants in India under the National Policy on Electronics 2012.