Critical Steps for India’s Electronics Manufacturing Future
A report by the Confederation of Indian Industry (CII) underscores the urgent need for India to shift from an import-dependent assembly-led manufacturing to one focused on value-added component manufacturing in electronic sector. In 2023, the demand for components and sub-assemblies was US$ 45.5 billion to support US$ 102 billion in electronics production. This demand is projected to surge to US$ 240 billion by 2030, supporting US$ 500 billion in electronics production.
The report identifies five priority components and sub-assemblies, including lithium-ion batteries, camera modules, mechanicals, displays, and PCBs, which constituted 43 percent of the component demand in 2022. To meet the projected growth of these components, reaching US$ 51.6 billion by 2030, the report recommends key government actions. These include introducing fiscal support schemes like SPECS 2.0, rationalizing import tariffs, and signing free trade agreements (FTAs) with European and African countries.
Additionally, the report highlights challenges such as cost disabilities compared to China, Vietnam, and Mexico, and the need for a domestic design and raw materials ecosystem. Addressing these issues could lead to significant economic benefits, including creating approximately 280,000 jobs by 2026, increased domestic value addition, reduced import dependency, and a boost in GDP, positioning India as a global hub for electronics manufacturing.