Made in India, for India

Strong demand from the wireless communications and IT segments has played a key role in the expansion of India’s overall semiconductor revenues in 2009, which reached $5.39 billion, according to the latest India Semiconductor Association (ISA)-Frost and Sullivan report “India Semiconductor Market Update 2009-11”. The report stated that the phenomenal penetration rate of mobile handsets, massive expansion of communications infrastructures, and the drive to extend IT to the grassroots of Indian society are expected to push India’s total semiconductor market to achieve a CAGR of 22.2 percent until 2011, wherein total revenues are forecast at $8.04 billion.

One key point for this growth is the opportunity being presented by several developments and initiatives happening in the country. For one, the healthcare programs by the India government, which are aimed at taking the most sophisticated medical facilities to the rural areas, are driving manufacturers to design and develop portable, cheap, and user-friendly medical devices and equipment in India—for India.

India’s defense segment, with the mandate to procure more localized products as part of the country’s defense modernization efforts, is also expected to benefit the local semiconductor market. In addition, the transition to smart cards-based identification for driving licenses, e-passports, the Kisan Credit Cards, and other welfare programs are said to enhance the prospects for smart cards in the country.

And of course, let us not forget the country’s automotive segment. With the launch of the Tata Nano, the cheapest car in the world today, India's automotive industry is becoming a center for small car manufacturing. According to the ISA-F&S report, this development augurs well for the development of systems with significant semiconductor content. Environmental regulations targeted at reducing emission levels as well as management of fuel consumption are critical drivers as well toward development of electronics systems for energy efficient cars in the country.

India has come a long way in the electronics design industry. The growing localization trend in its electronics manufacturing, with the goal of catering to domestic demand as well as for exports, is definitely a key element in its journey toward global competitiveness.