Explore the growth of electronics manufacturing in India, uncovering 7 powerful drivers transforming the sector into a global hub.
A Quiet Revolution in the Making
The growth of electronics manufacturing in India isn’t just a headline—it’s a seismic shift that’s redefining the global tech supply chain. India, once known primarily as a software services hub, is fast emerging as a formidable force in electronics design and production. Have you ever wondered how your smartphone or smart TV might soon bear a “Made in India” tag? You’re not alone.
This transformation didn’t happen overnight. It’s driven by visionary policies, increasing foreign investment, and a skilled workforce ready to meet the demands of a digital-first world. Whether you’re an industry insider, an investor, or just a curious reader—this is the story you can’t afford to skip.
1. How India Went from Importer to Emerging Export Giant
For decades, India relied heavily on imports to meet its electronics demand. But that’s changing—fast.
Then vs Now: The Landscape Shift
| Year | Electronics Imports (USD) | Electronics Exports (USD) | Key Shift |
|---|---|---|---|
| 2014 | $36 Billion | $6 Billion | Import-driven |
| 2023 | $52 Billion | $23 Billion | Export acceleration |
Thanks to the Production Linked Incentive (PLI) Scheme, export-oriented manufacturing has become a key priority. Brands like Apple, Samsung, and Dixon Technologies now assemble high-value products within Indian territory. India’s electronics exports are expected to cross $120 billion by 2026, making it one of the world’s fastest-growing production centers.
Powering Up with the PLI Scheme
Have you heard of the PLI scheme for electronics manufacturing in India? It’s a game-changer. Launched in 2020, this initiative provides incentives to manufacturers based on incremental sales, thereby encouraging scale.
Key PLI Highlights:
- Budget Allocation: ₹38,600 crore for electronics
- Sectors Covered: Smartphones, IT hardware, semiconductors, white goods
- Impact: Creation of over 200,000 direct jobs and thousands more indirectly
This scheme has already attracted global players like Foxconn, Wistron, and Pegatron, making India a preferred alternative to China in supply chain diversification.
3. Rise of Manufacturing Hubs Across India
India’s electronics industry isn’t just centralized in one region—it’s thriving across multiple electronics manufacturing clusters.
Top Electronics Manufacturing Hubs in India:
- Noida, Uttar Pradesh – Smartphone assembly and components
- Chennai, Tamil Nadu – Semiconductors, automotive electronics
- Bengaluru, Karnataka – R&D, EMS services
- Pune, Maharashtra – Consumer electronics and smart devices
- Hyderabad, Telangana – Semiconductor fabs and PCB manufacturing
Each region contributes to the growth of the Indian electronics sector through unique specializations and state-level policy support.
Positive Growth of Electronics Manufacturing in India: 7 Key Drivers Shaping the Future https://t.co/f8QAqTWLpa #electronics #MakeInIndia
— ViewsIND (@views_ind) June 17, 2025
4. India’s Global Role: The New Supply Chain Backbone?
Global OEMs (Original Equipment Manufacturers) are now viewing India as a critical node in their global supply chains. The pandemic exposed the risks of over-dependence on China, accelerating the “China+1” strategy.
Why India Fits the Bill:
- Young, skilled workforce
- Low labor costs
- Improving ease of doing business
- Government push via Digital India & Make in India
In fact, India is already the second-largest mobile phone manufacturer by volume and aims to become a $300 billion electronics manufacturing economy by 2026.
5. Homegrown Innovation & Design
You might be surprised to learn that Indian firms aren’t just assembling—they’re designing too. The Electronics System Design and Manufacturing (ESDM) sector is booming, with over 120 domestic design firms offering PCB layout, embedded systems, and SoC (System on Chip) solutions.
Example:
- Bharat Electronics Limited (BEL) and Sahasra Semiconductors are developing indigenous chipsets and components.
- Startups like Signalchip have even built 5G chipsets domestically.
This marks a shift from low-cost manufacturing to value-added innovation, which boosts long-term sustainability.
6. Jobs, Skill Development & Human Capital
India’s demographic dividend is its greatest asset. But how is it being utilized?
Skill India + Digital India = Workforce Readiness
- ESSCI (Electronics Sector Skills Council of India) has trained over 500,000 workers in key manufacturing roles.
- Dedicated Centers of Excellence and Finishing Schools are emerging in Tier 2 and Tier 3 cities.
This ensures that as EMS companies expand operations, there’s no talent shortage. Plus, with new automation and robotics in assembly lines, upskilling is now part of everyday business.
7. Challenges Ahead: Can India Maintain This Momentum?
While the growth of electronics manufacturing in India is undeniably positive, it’s not without hurdles.
Key Challenges:
- Import dependency on semiconductor wafers and displays
- High logistics and power costs
- Delays in setting up semiconductor fabs
However, initiatives like the Semicon India Program and public-private partnerships aim to bridge infrastructure gaps, making this an evolving story.
What Does This Mean for You?
Whether you’re a tech entrepreneur, policymaker, or just a tech enthusiast, the electronics boom in India is something you can’t ignore. If you’re an investor, opportunities abound in:
- EMS partnerships
- Component manufacturing
- Talent training platforms
- Hardware product startups
If you’re a job seeker or student, aligning your skills to electronics manufacturing could open exciting doors.
Final Thoughts: India’s Electronics Leap is Just Beginning
The growth of electronics manufacturing in India is more than just numbers—it’s a sign of national transformation. It represents a shift from being a passive consumer to becoming an active innovator and supplier to the world.
The road ahead involves global collaboration, sustainable practices, and empowering local talent. But one thing is clear—India’s electronics future looks bright, dynamic, and deeply rooted in progress.
So, the next time you unbox a phone, assemble a smart gadget, or power up a device, don’t be surprised if it proudly says: “Made in India.”