How India Is Set to Become a Global Hub for Electronic Manufacturing by 2030

• May 22, 2025
• by admin
• Electronic Components
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In the rapidly digitizing world, electronics form the backbone of everything—from smartphones and smart homes to advanced medical devices and satellites. Once heavily reliant on imports to meet its soaring domestic demand, India is now on a mission to rewrite its destiny as a self-reliant and globally competitive electronics manufacturing hub. The country’s aspirations are no longer tentative—they are backed by massive policy reforms, billion-dollar investments and an expanding digital consumer base.

As of 2025, India ranks among the top five smartphone manufacturing countries globally. But that’s just scratching the silicon surface. With geopolitical shifts pushing multinational giants to diversify supply chains, India is no longer a backbencher in the global electronics class—it’s eyeing the front row.

Union Minister for Electronics and IT, Ashwini Vaishnaw, recently said in April 2025, “India will become the world’s electronics factory. We have the policy, the talent and now the infrastructure to make it happen.” This ambition isn’t just a pipe dream—it’s rapidly shaping into a tangible reality. The nation’s aim is bold: achieve $300 billion worth of electronics manufacturing by 2026 and double exports by the decade’s end.

Let’s unravel the major drivers behind India’s transformation into a global electronics manufacturing powerhouse—and what it means for the future of tech on the subcontinent.

1. Policy Push: Schemes That Gleam

The Indian government’s proactive policies have been instrumental in propelling the electronics manufacturing sector. The Production Linked Incentive (PLI) scheme, launched in 2020, offers incentives ranging from 3% to 6% on incremental sales of goods manufactured in India. As of March 2025, the government announced a substantial ₹22,919 crore PLI scheme specifically targeting electronic components, aiming to reduce import dependency and boost local production.

Additionally, the Electronics Component Manufacturing Scheme (ECMS), notified in April 2025, incentivizes the manufacturing of critical sub-assemblies and components, further strengthening India’s position in the global value chain.

These initiatives are expected to generate significant employment opportunities and attract substantial investments, reinforcing India’s commitment to becoming a global electronics manufacturing hub.

2. Export Escalation: Scaling New Heights

India’s electronics exports have witnessed a significant surge. In the fiscal year 2023-24, electronics exports reached $29.12 billion, marking a 23.6% increase from the previous year. Smartphones have been at the forefront of this growth, with exports surpassing petroleum products and diamonds to become India’s top export commodity in 2025.

Projections indicate that electronics exports could reach $61 billion by 2030, more than doubling from 2023 levels. This growth trajectory underscores India’s evolving role in the global electronics supply chain.

3. Infrastructure Infusion: Building the Backbone

Infrastructure development has been pivotal in attracting investments. The Yamuna Expressway Industrial Development Authority (YEIDA) is spearheading a ₹450 crore technology hub near the Noida International Airport. Spread over 206 acres, this hub is expected to create over 31,000 jobs and houses major players like Havells, which plans to invest ₹800 crore in manufacturing facilities.

Moreover, the Union Cabinet approved a ₹3,700 crore semiconductor manufacturing facility by HCL and Foxconn in Noida, aiming to produce 36 million display driver chips monthly. These developments signify India’s commitment to becoming a semiconductor and high-end electronics manufacturing hub.

4. Global Dynamics: The ‘China Plus One’ Strategy

The global shift towards diversifying supply chains has positioned India as a favorable alternative to China. The ‘China Plus One’ strategy has led major electronics firms, including Apple, Samsung and Foxconn, to shift portions of their supply chains to India. This strategic realignment is bolstering India’s electronics manufacturing ecosystem and enhancing its global competitiveness.

However, challenges remain. Former Intel executive William Huo emphasized that India’s ambition to become a global manufacturing hub may not materialize unless it collaborates more extensively with Chinese capital and supply chains. Balancing geopolitical considerations with economic imperatives will be crucial for India to navigate this complex landscape.

5. Investment Influx: Capitalizing on Opportunities

Foreign Direct Investment (FDI) in the electronics sector has surged by 254% since the launch of the ‘Make in India’ initiative. Between 2014 and 2024, India received a total of $667.4 billion in FDI, reflecting growing investor confidence. The government’s target of achieving $300 billion worth of domestic electronics manufacturing by 2025-26 further underscores its ambitious vision.

The PLI schemes have led to an increase in FDI inflows between FY22 and FY23 in various sectors, with electronics witnessing significant growth. As of December 2023, 746 applications have been approved in 14 sectors with expected investments of USD 100 billion. This influx of capital is instrumental in building a robust electronics manufacturing ecosystem in India.

6. Employment Expansion: Creating a Skilled Workforce

The electronics manufacturing sector is expected to create 5.5 to 6 million jobs by 2030, significantly contributing to India’s economic growth. Initiatives like the establishment of the technology hub near Noida are anticipated to generate over 31,000 direct and indirect jobs, emphasizing the sector’s potential in employment generation.

The Skill India initiative, launched by Prime Minister Narendra Modi, aims to train over 30 crore people in different skills by 2022. This program is pivotal in equipping the workforce with the necessary skills to meet the demands of the burgeoning electronics manufacturing sector.

7. Challenges Ahead: Navigating the Roadblocks

Despite the optimistic outlook, challenges persist. India needs to transition from an ‘import-dependent assembly-led manufacturing’ model to ‘component-level value-added manufacturing’ to fully realize its potential. Addressing issues related to infrastructure, supply chain logistics and skill development will be crucial in overcoming these hurdles.

Furthermore, environmental concerns, particularly electronic waste management, pose significant challenges. India is the third-largest electronic waste producer globally, generating approximately 2 million tons of e-waste annually. Implementing sustainable practices and robust recycling mechanisms will be essential to mitigate the environmental impact of increased electronics manufacturing.

Conclusion: The Road to 2030

India’s journey towards becoming a global hub for electronic manufacturing is marked by strategic policy interventions, robust infrastructure development and increasing global integration. By capitalizing on current opportunities and addressing existing challenges, India is well on its way to achieving its 2030 vision.

Key Takeaways:

• Implementation of PLI and ECMS schemes to boost domestic manufacturing.
  
• Significant increase in electronics exports, with smartphones leading the charge.
  
• Development of infrastructure hubs like YEIDA to attract investments.
  
• Adoption of the ‘China Plus One’ strategy by global firms
  
• The surge in FDI and ambitious manufacturing targets set by the government.
  
• Potential creation of up to 6 million jobs in the sector by 2030.
  
• Need to shift towards component-level manufacturing to enhance value addition

With concerted efforts and strategic planning, India is poised to redefine its position in the global electronics manufacturing landscape by 2030.