ESDM sector to generate Rs 19k cr revenue by 2024

The electronic system design and manufacturing (ESDM) sector is poised to generate cumulative revenue of Rs 18,800 crore revenue in Odisha by 2024, as per the estimates of The India Electronics & Semiconductor Association (IESA).IESA, a premier trade body representing the ESDM sector, has prepared a draft report, projecting the revenue, potential investments and employment opportunities in this field. The draft report says investment of Rs 7340 crore need to be pumped into the sector in three phases to realise the projected revenue.

Phase 1 (2016-18) can start with system integration and assembly of low complexity products and components.

In Phase-2 (2019-21), the manufacturing activities would get deeper into CKD (completely knocked down) assembly, component manufacturing and manufacture of products with medium to high complexity.The focus in Phase 3 (2022-24) can be on products that are complex or require a mature ecosystem, and require good talent availability and large investment.

The industry body has also estimated that the sector has a potential to generate about 60000 jobs in the next 10 years.

IESA today made a presentation on the draft report before the officials of different departments.Among others, IT secretary Madhusudan Padhee, Odisha Industrial Infrastructure Development Corporation (Idco) CMD Vishal Dev and secretary, department of technical education and training (DTET) C S Kumar were present at the meeting.

"Huge demand supply mismatch and low value addition are the biggest challenges faced by the Indian ESDM industry", Rajiv Jain, vice presindent (government affairs), IESA said in his presentation. The trade body has recommended the state government to focus on manufacturing of medical electronics, industrial electronics, mobile devices, telecom products and equipment and consumer electronics.It has also suggested the state government to create an ecosystem for growth of the state, focus on human resource aspect, building demand and research & development (R&D).

The industry body has identified Rayagada, Sundergarh, Balasore and Ganjam districts as the potential areas for the ESDM sector after a SWOT (strength, weakness, opportunities and threat) analysis. Presently, the focus is mainly on Khurda district where the proposed Infovalley, a dedicated IT hub, is coming up.As per the estimates, the demand for electronics in India was $ 45 billion in 2008-09 and is expected to touch $ 400 billion by 2020. The National Policy on Electronics has set a target to attract investment of around $100 billion and create employment opportunity for 28 million people by 2020.