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India’s electronics manufacturing sector is entering one of the most significant phases in its modern industrial history. For decades, India remained a large consumer of electronics but a relatively small producer in global value chains. Today, this balance is changing rapidly. New Free Trade Agreements (FTAs), deeper policy reforms, and a visible acceleration of investor interest are collectively reshaping India’s electronics ambitions—pushing the industry toward an audacious target: US$500 billion in manufacturing size by 2030.

This transformation is not accidental. It reflects a historically rare moment when policy intent, global supply-chain realignment, and domestic industrial confidence are aligning.

Historical Perspective: From Import Dependency to Strategic Manufacturing

India’s electronics story for decades was defined by import dependency. As global firms shifted assembly and component production to East Asia during the 1990s and 2000s, India largely missed the bus. Lack of FTAs, outdated customs regimes, and weak infrastructure kept the country on the sidelines.

However, the turning point began in the mid-2010s with:

The launch of Make in India

Rising mobile phone assembly

Early phases of domestic smartphone value addition

PLI schemes targeted at components and semiconductors

An assertive strategy to reduce import vulnerabilities after global disruptions such as COVID-19 and US-China tensions


These developments laid the foundation for a new policy mindset: India should not only assemble but must integrate deeply into global electronics supply chains.

FTAs as a Strategic Tool, Not a Concession

The recent wave of FTAs—especially with the UAE, Australia, the UK (in progress), and ongoing negotiations with the EU—signal a major shift. Historically, India approached FTAs cautiously, often opting out due to fears of import surges.

Today, that calculus has changed.

FTAs are now viewed as strategic industrial tools, enabling:

Easier sourcing of critical components

Faster integration into global supply chains

Lower tariffs for inputs such as PCB laminates, chip components, sensors, and high-precision tooling

Greater market access for Indian electronics exports

Alignment with global testing, certification, and safety standards


In a world where supply chains are becoming multi-location and risk-diversified, India’s FTAs are designed to ensure that the country becomes a credible alternative to East Asian manufacturing hubs.

The Framework Behind the Growth

The government’s reform framework has been unusually consistent and industry-aligned. Key reforms shaping the ecosystem include:

Production-Linked Incentive (PLI) schemes for electronics, components, and semiconductors

Design-Linked Incentive (DLI) to build India’s electronics R&D capability

New logistics and customs modernization under National Logistics Policy

Electronics Repair Services (ERS) policy to make India a global repair hub

Semiconductor Mission focusing on fabs, ATMP units, and compound semiconductor ecosystems

Improvements in electronics testing and certification infrastructure, reducing lead times and dependence on foreign labs


The shift is visible on the ground: India is moving from assembly to deeper value addition—PCBs, modules, semiconductors packaging, testing, and IoT hardware.

Integration with Global Supply Chains: The Next Leap

India’s ambition is not just to meet domestic demand but to become a critical node in global electronics networks. The goal of US$500 billion manufacturing by 2030 reflects confidence in three structural shifts:

1. Component Localization
Growth in PCB manufacturing, camera modules, connectors, passive components, and potentially substrates.


2. Deepening Semiconductor Linkages
While full fabs will take time, ATMP units, design ecosystem expansion, and material supply chains are gaining momentum.


3. Export-Led Manufacturing
Electronics is becoming India’s new export frontier, moving alongside gems, textiles, and pharmaceuticals.



This shift mirrors earlier transformations seen in Vietnam, South Korea, and Taiwan—but India’s scale gives it a unique advantage.

Opportunities and Risks

While optimism is justified, the journey ahead will not be linear.

Risks include:

Global overcapacity in electronics if demand slows

High dependence on imported semiconductor wafers

Persistent skills shortages in high-precision electronics assembly

Tight competition from established Asian supply chains

Need for long-term policy consistency beyond electoral cycles


But the opportunities are immense:

Rising geopolitical demand for “China+1” and “Risk-diversified” manufacturing

Strong domestic market—largest after US and China by 2030

Digital infrastructure that encourages device adoption (UPI, ONDC, 5G, AI)

Indian firms moving up the value chain into modules, sensors, and EV electronics


For suppliers of components, semiconductors, tooling, test & measurement equipment, packaging materials, and specialty chemicals, this is a turning point. India’s electronics supply chain—once thin and import-dependent—is now thickening rapidly.

India in the Global Tech Landscape, 2030 and Beyond

By 2030, India could be positioned not merely as a manufacturing base but as a strategic electronics power, characterised by:

Strong regional electronics clusters (Noida, Chennai, Bengaluru, Hyderabad)

Advanced semiconductor packaging and compound semiconductor capabilities

Integration with global EV and telecom electronics ecosystems

A design-to-manufacturing ecosystem for wearables, IoT devices, and industrial electronics

A robust electronics export network linked through FTAs

Rapid scaling of AI-enabled manufacturing and robotics.

If India maintains current momentum, it will not just participate in global value chains—it will reshape them.

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