India’s Electronics Manufacturing Revolution Real Makers, Real Moves

A $125 Billion Milestone That’s Just the Beginning

India's electronics manufacturing journey has taken a giant leap over the past five years. In 2019, the total output stood at around $70 billion. Fast forward to 2024, and that number has touched $125 billion, showing how rapidly the sector is scaling. While this growth has often been associated with multinational giants like Apple, Samsung, Foxconn, and Micron, the real story now includes Indian players stepping up to global standards.

Companies like Dixon Technologies, Tata Electronics, Sahasra Group, and Kaynes Technology are no longer behind the scenes they are becoming leading exporters and global suppliers in their own right. And for the first time, India’s semiconductor ambitions are turning into reality. The country’s first fabrication (fab) units are expected to go live between 2025 and 2026, marking a significant shift from planning to production.

From Services to Factories : The Policy Shift That Changed It All

India’s transformation into a manufacturing hub began with the Make in India campaign launched in 2014. However, the real acceleration came post-pandemic. As global companies started diversifying their supply chains beyond China, the so-called China+1 strategy gave India a timely opening.

Several key advantages worked in India’s favor. First, the labor cost was 40–50% lower than in China, making India a more cost-effective destination. Second, infrastructure upgrades — including new industrial corridors, high-speed expressways, and modern ports — made logistics more efficient. Finally, a set of government policies specifically aimed at electronics manufacturing helped drive production and exports.

Policy Push That Powered the Electronics Boom

The government’s strategy was not just about slogans but real financial backing and regulatory support. The Production Linked Incentive (PLI) scheme for large-scale electronics and IT hardware provided substantial cash incentives tied directly to production and export volumes. The revamped PLI for IT hardware in 2023 further expanded coverage to include laptops, servers, tablets, and even AI hardware.

Another critical initiative, the India Semiconductor Mission (ISM), received a budget of ₹76,000 crore (~$10 billion). This mission focuses on building semiconductor fabs, chip design facilities, packaging units, and display fabs. Export policies were also simplified to ensure electronics manufacturers could serve global markets efficiently.

Electronics Manufacturing : Then vs Now

India’s electronics manufacturing numbers in 2024 look significantly better than they did just five years ago. The table below compares the key indicators from 2019 and 2024:

Source: MeitY, Counterpoint Research, PIB

This growth not only reflects higher production volumes but also more value addition happening within India a shift from assembly-based work to more integrated manufacturing.

India’s Rising Stars : Top Electronics Manufacturers

The transformation of India’s electronics sector is deeply tied to the rise of homegrown companies. These are not just local contract manufacturers anymore they are emerging as full-stack solution providers with global client portfolios.

Note: The Vedanta–Foxconn JV, though announced with big plans, is still facing project delays and site finalization challenges.

India’s 2026 Vision : Ambitious but Achievable

Looking ahead, the government has laid out a bold but structured roadmap under the Electronics Vision 2026. The goal is to take total production to $300 billion, with $120 billion in exports. Another major focus is on increasing domestic value addition particularly in smartphones and IT hardware from current levels to 25% or more.

The breakdown of Vision 2026 targets is as follows:

In short, the country doesn’t just want to assemble gadgets. It wants to design, fabricate, and package key components as well all within Indian borders.

But Challenges Are Real and Persistent

Despite all the momentum, a few key challenges remain — and solving these is essential for long-term competitiveness.

One of the biggest limitations is advanced chip manufacturing. India still lacks capabilities in cutting-edge nodes like 3nm and 5nm, which are currently dominated by TSMC (Taiwan), Samsung (South Korea), and Intel (U.S.). Indian efforts are instead focused on mature nodes like 28nm and 65nm, which are more relevant for automotive, telecom, and IoT applications.

The supply chain depth is another issue. While India assembles a large number of products, components like chipsets, displays, and camera modules are still imported, mostly from China, Korea, and Taiwan. Without a Tier-2 and Tier-3 supplier base, this dependence could become a bottleneck.

A third challenge is the shortage of skilled workforce, particularly in semiconductors. Cleanroom engineers, fab technicians, and chip designers are in short supply. To tackle this, the government has launched training programs under the Semicon India FutureSkills initiative — but large-scale upskilling will take time.

India in Global Rankings : Catching Up Fast

India has already surpassed countries like Vietnam and Mexico in electronics output. It now ranks as the second-largest low-to-mid-range electronics manufacturer, trailing only China.

Although India still lags behind Taiwan and South Korea in advanced chip tech, the gap is narrowing in packaging, assembly, and volume production segments.

Conclusion : A Quiet but Powerful Transformation

India’s electronics manufacturing revolution is no longer an “Apple and Foxconn-only” story. It’s becoming more Indian by the year. Companies like Dixon, Tata Electronics, Sahasra, and Kaynes are now shaping the country’s future in tech hardware, semiconductors, and export-ready electronics.

If India can plug the remaining gaps in chip design, component manufacturing, and talent development, the dream of becoming one of the top 3 global electronics producers by the early 2030s is well within reach.

This isn’t just a short-term boom. It’s the making of a long-term industry.

Sources :

Ministry of Electronics and IT (MeitY) Reports

2024India Semiconductor Mission Updates

2024Counterpoint Research India Manufacturing InsightsQ1 2025