India’s electronic manufacturing sector is set to boom in the next five years, doubling in size to reach around USD 250 billion, according to sources in the Ministry of Electronics and Information Technology. The current electronic exports of the country stand at approximately USD 125-130 billion, and the government is aiming to address the issue of unemployment by creating jobs in this sector, with a target of increasing employment from 25 lakh to around 50 lakh jobs.
The Ministry of Electronics and Information Technology has emphasized its focus on providing services to digital technology and on enabling large-scale electronics manufacturing in India. The nation is already making strides towards self-sufficiency and becoming an export-led manufacturer, particularly in segments such as mobile phones and laptops. To support the growth of electronic manufacturing in the country, the Indian government has allocated Rs 760 billion for various incentive schemes.
Despite being the fourth largest in the world, India’s per capita electronic consumption is only one-fourth of the global average. The country heavily relies on imports, with China and Hong Kong accounting for a significant portion of India’s total electronic imports. On the other hand, mobile phones and Electronic Control Units (ECUs) are the leading electronic exports for India, with the United States and the UAE being the largest export destinations.
Experts believe that India’s electronic manufacturing sector is on the verge of becoming a global hub, driving economic development, job creation, and technological innovation across the country. To solidify its position in the global market, the Indian government has rolled out various schemes, including the Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing, PLI for IT Hardware, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and Modified Electronics Manufacturing Clusters Scheme (EMC 2.0).
In addition to these schemes, the government has also introduced the Semicon India Program with an incentive outlay of USD 10 billion, aimed at developing a sustainable semiconductor and display ecosystem in India. The ultimate goal is to establish India as a global hub for semiconductor and display manufacturing, ensuring the country’s competitiveness in the international market. With these initiatives in place, India is poised to emerge as a key player in the global electronic manufacturing landscape in the coming years.
