According to a report by Motilal Oswal Wealth Management Limited, the total electronics production in India is expected to clock a compound annual growth rate (CAGR) of 26 per cent from calendar year (CY) 23-CY30, reaching $500 billion (finished goods $350 billion and components $150 billion).
According to the report, India is positioned to become a preferred manufacturing destination for investments seeking a credible and sustainable environment. Over the years, India has witnessed an increase in product assembly activities, led by unprecedented demand in electronic manufacturing services (EMS) activities in the mobile phones, automotive, industrial, and telecom segments. A range of components is required to meet the increased demand for EMS finished goods. These components have common uses across user products and offer 10 per cent- 40 per cent value-addition opportunities. These priority components and PCBAs are expected to reach $ 139 billion by CY30.
As per the report, India is increasingly recognised as a prime global hub for electronics manufacturing, driven by a surge in assembly activities and an unprecedented demand within the EMS sector, particularly in mobile phones, automotive, and industrial segments.
Further, favourable policies such as the Production Linked Incentive (PLI) schemes and the Semicon India program are crucial in fostering growth. These initiatives aim to enhance domestic production capabilities and attract foreign investments. The rising domestic consumption of electronic products is a significant factor contributing to this growth trajectory, alongside a strong push towards self-reliance that is reshaping the landscape and encouraging local manufacturing.
The report further added that the government plans to introduce substantial incentives aimed at domestic companies to enhance the production of critical components. This initiative will likely focus on manufacturing essential elements such as printed circuit boards (PCBs) for devices like laptops, thereby strengthening local supply chains and reducing dependency on imports.
