India's $10-trillion economy goal to be led by manufacturing push

livemint.com:

BENGALURU : India's aim to grow into a $10-trillion economy over the next decade will be fuelled by manufacturing in sunrise sectors such as semiconductors, electronics manufacturing, electric vehicles ecosystem, renewable energy and defence, according to a report by Boston Consulting Group and Matrix Partners. The report estimates that the market for electronics is about $500 billion while semiconductors will become a $120-billion market by 2030.

In the last few years, factors such as favourable government policies and strong domestic demand have already driven global leaders like Foxconn, Dell, Samsung, Micron, Renesas, and Microchip to set up units in India. Within these sectors, there are immense design opportunities across building graphic processing units and microcontrollersin India owing to its lower cost structure, the report said.

There is also significant headroom to localize manufacturing and assembly, enabling complete ecosystem indigenization for semiconductors. As India progresses towards cleaner sources of energy production, it is undergoing a large-scale electrification of mobility.

The report estimates 14 million units per annum of EV sales by 2030, driven by Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) subsidies and the electrification of public transport while investments in solar energy will also be a key driver of renewable energy, with India planning to spend about $140 billion in the next 7 years. The joint report further highlights the opportunities within manufacturing cells & cell components, design of customized powertrain components for Indian terrain and drive cycles, and the massive export potential in solar cells and green hydrogen electrolysers.