Ashok Kumar Gupta, Chairman, Optiemus Infracom
India’s electronics manufacturing story has entered a new phase. A decade ago, the focus was clear: reduce import dependence and build assembly capacity. Today, the ambition is far broader. India is evolving from a consumption-led electronics market into a credible manufacturing base, particularly in mobile phones and other high-volume devices.
That progress now raises a more important question for the sector: what comes after assembly-led scale? The answer lies in whether India can deepen its role in the value chain by building strength in components, parts and subassemblies.
Components are the next frontier
India has already shown that it can build scale in electronics assembly, with electronics production increasing more than five times over the past 10 years to an estimated more than 12 trillion. Mobile manufacturing, in particular, is the shining success of Make in India, with more than 300 mobile manufacturing units in the country, compared to just two in 2014. The expansion matters because it demonstrates that industrial capacity can be created rapidly when policy support, market demand and execution align.
Assembly captures one part of the value chain. Scale is the most important ingredient to build the supply chain. In electronics, the larger gains come from building the ecosystem beneath the finished product: printed circuit boards, camera modules, mechanics, display-related parts, laminates, connectors and other critical subassemblies. As we move towards the vision of building a $500 billion electronics manufacturing ecosystem, deepening of the supply chain is an important milestone that we need to achieve as a nation. A country that only assembles remains vulnerable to imported inputs.
Policy is beginning to reflect this shift
India’s policy environment is now signalling that deeper manufacturing is the next priority in addition to building scale in finished products. The production-linked incentive (PLI) framework helped create confidence in finished goods and made electronics manufacturing a serious national industrial project. The next layer of support is now moving closer to the supply chain itself.
The electronics components manufacturing scheme is an important inflection point in this transition. With the approved outlay increased to Rs 400 billion from Rs 230 billion, it signals a clear policy push towards strengthening domestic capabilities in electronics components and reducing structural dependence on imports. What makes this particularly significant is the continuity of intent. In sectors like electronics, sustained policy direction often determines whether growth remains incremental or evolves into a durable, self-reinforcing ecosystem. Early industry response is a meaningful indicator of this intent translating into action. The first phase of approved projects under the scheme accounts for investments worth around Rs 550 billion. These commitments suggest that manufacturers are beginning to see both demand visibility and policy stability as credible enough to invest in deeper, more complex capabilities within India.
Why this matters for business?
For business leaders, this transition is about the quality of growth. Assembly creates scale. Component manufacturing creates depth. It demands precision, stronger engineering and tighter process control, but it also allows companies to capture greater value and gain a more durable competitive advantage.
It also changes their investment profile. Companies that participate in higher-value manufacturing are often better placed to attract long-term capital because they are building industrial capability rather than relying only on final-stage volume. The government is doing its part by creating an enabling ecosystem. Now, it is time for the Indian industry to establish a global vision to participate in this supply chain revolution in the country.
Localisation is also a supply chain strategy
In electronics, where supply chains are globally distributed and often tightly timed, dependence on imported components can quickly become a structural weakness. Localisation does not eliminate risk, but it reduces vulnerability. It improves turnaround times, gives manufacturers greater control over production planning and allows faster response to changes in market demand.
For Indian businesses, it has practical implications. A stronger domestic components base can lead to shorter lead times, more stable sourcing, and better coordination between design, manufacturing and delivery. These are not secondary efficiencies. They influence working capital, customer responsiveness and overall competitiveness.
The export opportunity will depend on ecosystem depth
India has already proven that it can build scale in electronics. The next challenge is to build globally competitive supply chain capabilities that bring value within that scale.
The countries that lead in manufacturing are not defined by how much they assemble, but by how much they create within the product itself. For India, this is the inflection point. The next phase will be defined by those who invest early in components and ecosystem depth, and in doing so, shape India’s position in global supply chains.
