"Connecting communities, empowering nations: Unifying the Regional and Global Economy ."

Introduction:

India’s electronics industry has immense potential for growth, and to achieve this, collaborative efforts between industry players and policymakers are crucial.

Over the years, the dialogue between the electronics industry and policymakers has evolved into a more objective and data-driven approach. Recognizing the importance of informed decision-making, this shift sets the foundation for a strategic and productive collaboration. McKinsey’s research estimating a $4.6 trillion global trade shift in the coming years provides a compelling incentive for India to capture 20% of this share, amounting to a staggering $1 trillion.

Maximizing Manufacturing Potential:

Currently valued at $100 billion, India’s electronics manufacturing industry aims to triple this figure to $300 billion by fiscal year 2026 through government and industry efforts. Having set an even more ambitious target of $425 billion by fiscal year 2030, stakeholders recognize the untapped potential for growth in this arena. Achieving this requires a focus on increasing local value addition, which currently stands at a mere 23% but must be doubled by 2030.

Boosting Exports and Strengthening Integration:

Export growth is a significant accomplishment for India’s electronics industry, with a remarkable increase from the previous year, reaching 24% of total manufacturing. Nevertheless, the conversation acknowledges the need for further improvement. The integration of local value addition is crucial for realizing this growth, as seen in the successful example of air conditioners where local value addition increased from 25% to 45% within 18 to 19 months. Prioritizing the assembly of products consumed domestically and achieving backward integration are key steps to fuel this progress.

Unification, Standardization, and Consolidation:

The importance of unification and standardization, drawing inspiration from the successful practices in the automotive industry. Standardizing processes and components encourages efficiency and scalability. Additionally, the consolidation and aggregation of demand for components play a vital role in driving economies of scale, making the industry more competitive in global markets. Addressing challenges posed by the expanding influence of printed circuit board assemblies and adopting rationalization strategies are essential to unlock growth in this field.


The growth of India’s electronics industry depends on collaborative efforts between industry players and policymakers. Prioritizing objectives, increasing local value addition, standardization, and addressing challenges related to printed circuit board assemblies are vital steps for success. With the potential for exponential growth, it is crucial to approach strategic planning and execution with precision, ensuring that India seizes the opportunity to become a global leader in the electronics sector.