India’s ESDM Market to Double to Rs 7–8 Lakh Crore by 2030: Report

New Delhi, Oct 4 (KNN) India’s electronics system design and manufacturing (ESDM) sector is set for rapid growth. 

A report by CareEdge Ratings projects the market will grow at a compound annual growth rate (CAGR) of 20–25% between FY 2025 and FY 2030, reaching a size of Rs 7–8 lakh crore.

Between FY 2020 and FY 2025, the sector recorded strong momentum with a growth rate of about 28% CAGR. This expansion has been supported by rising disposable incomes, increasing smartphone adoption, and a growing demand for smart devices across both urban and smaller towns.

The smartphone industry is the largest contributor, making up nearly 62% of the overall ESDM market in FY 2025. India has significantly reduced its dependence on imports, with almost 99% of smartphones sold domestically now manufactured within the country. 

The value of smartphone production has jumped from Rs 18,900 crore in FY 2014 to Rs 4,22,000 crore in FY 2024.

Annual smartphone output has consistently crossed 150 million units, and production is expected to reach 325–330 million units in FY 2025. 

Exports have grown sharply, accounting for 36% of total smartphone output, compared to only 8% in 2015.

Government support through schemes such as the Production Linked Incentive (PLI), SPECS, ECMS, and the Phased Manufacturing Programme (PMP) has played a crucial role in this success. 

As a result, the number of smartphone manufacturing units has expanded from just two in 2014 to more than 300 by 2024.

With additional growth drivers such as AI, IoT, and electric vehicles, India is steadily emerging as a global hub for electronics manufacturing.

(KNN Bureau)