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The Indian electronics sector has witnessed significant growth in recent years, with the government implementing various initiatives to boost domestic manufacturing and exports. One such initiative is the Production Linked Incentive (PLI) scheme, which aims to promote domestic production of electronic products and components. The government has allocated approximately $17 billion over the next six years towards four PLI schemes, which include Semiconductor and Design, Smartphones, IT Hardware and Components, and Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and Modified Electronics Manufacturing Clusters Scheme (EMC 2.0).

The introduction of the PLI scheme is expected to spur the growth of the electronics manufacturing industry in India. It is projected that the industry will grow from $75 billion in 2020-21 to $300 billion by 2025-26. The key drivers of this growth will be mobile phones, IT hardware, consumer electronics, industrial electronics, auto electronics, electronic components, LED lighting, strategic electronics, printed circuit board assembly (PCBA), wearables and hearables, and telecom equipment.

Furthermore, India’s domestic demand for consumer electronics is also on the rise, with an estimated value of $21.18 billion by 2025. The adoption of emerging technologies such as 5G networks and the Internet of Things (IoT) will further fuel the growth of India’s electronics market. The government’s policies and initiatives aim to create a favorable business environment for electronics manufacturing by providing financial incentives, streamlining regulations, and offering infrastructure support.

It is anticipated that the PLI scheme will significantly boost the electronics manufacturing industry, leading to a five-fold increase in digital consumption to $340 billion by 2030. In conclusion, the likely trends in the electronic sector in India over the next five years are increased domestic demand, higher production and exports, and the development of new technologies and products. This presents a promising future for the electronics manufacturing industry in India.

References:
1.https://www.pwc.in/research-and-insights-hub/india-calling-decoding-the-countrys-electronics-manufacturing-journey-and-the-way-forward.html
2.https://www.ibef.org/exports/electronic-and-computer-software-industry-in-india
3.https://telecom.economictimes.indiatimes.com/news/economic-survey-india-aims-for-electronics-manufacturing-worth-300-bln-by-fy26/97485839
4.https://www.investindia.gov.in/sector/electronic-systems
5.https://www.policycircle.org/economy/industry/pli-scheme-for-electronics-industry/
6.https://www.vvdntech.com/blog/the-promising-future-of-electronics-manufacturing-in-india/