India's electronics supply chain stands at the forefront of transformative growth with the onset of the Electronics Component Manufacturing Scheme (ECMS) — a strategic initiative designed to reinforce domestic manufacturing and position the nation as an independent hub in the global electronics supply chain.

The country's position in electronics manufacturing has steadily grown in recent years. It is projected to reach $500 billion by 2030¹, driven by increasing demand and strategic government initiatives aimed at fostering growth.

The ECMS reflects the country's strategy towards transforming manufacturing potential into a plan for innovation.
 

Current market position and growth trajectory

The smartphone sector leads India's electronics manufacturing achievements, with about 99.2% of devices sold now made within the country². This reflects India's adeptness in intricate assembly processes and sets the stage for more advanced manufacturing. Central drivers behind this progress are government policies, a young demographic, a growing middle class, and rising per capita incomes.
 

Policy framework for development

With an outlay of ₹22,919 crore, the ECMS will make India Aatmanirbhar in the electronics supply chain. The scheme envisages attracting investment worth ₹59,350 crore, producing electronic components worth ₹4,56,500 crore and generating additional direct employment of 91,600 people.³

The government has implemented a comprehensive policy framework to accelerate sector-wise growth, building on past initiatives that have yielded measurable success and laid a strong foundation for continued progress. Some of these policies are:

• Production-Linked Incentive (PLI) schemes: PLI schemes have accelerated domestic manufacturing across various sectors and attracted ₹1.61 lakh crore in investments, improved production to worth ₹14 lakh crore and generated exports of ₹5.31 lakh crore in total.⁴
• Scheme for Promotion of Manufacturing of Electronic Components & Semiconductors (SPECS): It provides financial incentives of 25% on capital expenditure to produce specified electronic goods to address critical gaps in the supply chain⁵. The scheme incentivises investments in these areas and helps promote high-value-added manufacturing within the country.
• National Policy on Electronics (NPE) 2019: The policy, launched in 2019, aims to position India as a global hub for Electronics System Design and Manufacturing (ESDM). The government has established a working group to revamp the existing policy to achieve the goal of generating $400 billion in revenue from the ESDM by 2025.⁶
• Electronics Manufacturing Clusters (EMC) Scheme: This offers financial assistance of up to 50% of the project cost⁷, with a ceiling of ₹50 crore for every 100 acres of land for greenfield projects.
• Phased Manufacturing Programme (PMP): It helps establish a structured approach to developing semiconductor and electronic component production capabilities across manufacturing units.
• Electronics Development Fund (EDF): This ensures the development of critical infrastructure components within the ESDM sector.

Strategic industry focus

To maximise development potential, the government has identified following key sectors for concentrated emphasis:⁸

• Consumer electronics (TV and Audio)
• IT hardware development
• Industrial electronics
• Mobile phones and component manufacturing
• Auto electronics
• Wearables and hearables
• Strategic electronics
• Telecom equipment
• Electronic components

Each of these sectors represents a significant market opportunity, with potential for technological advancement and value-chain integration.
 

Infrastructure development

India's entry into global value chains has been further enhanced by its strategic approach to developing manufacturing infrastructure. The establishment of Electronics Manufacturing Clusters has created conditions particularly suited for electronics manufacturing.

Developing a comprehensive logistical network, including port modernisation, road network expansion and establishing designated freight corridors, complements these manufacturing zones. The dual objectives of these transportation infrastructure upgrades are meant to improve export capacity and strengthen domestic distribution.
 

Domestic value addition and manufacturing success

India's electronics manufacturing sector aims to achieve 30-35% of value addition within the next five years to align with international standards, such as those of South Korea and Taiwan.⁹

Significant projects contributing to these strategies include:

1. Semiconductor manufacturing: Under the Semicon India Programme, the Government has approved six¹⁰ semiconductor projects, which comprise one Semiconductor Fabrication facility and five Semiconductor ATMP/OSAT facilities. These include:
   • Micron for setting up a semiconductor unit in Gujarat
   • Tata Electronics Private Limited (TEPL) in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, in Gujarat
   • Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) in Assam
   • CG Power, in partnership with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand, in Gujarat
   • Mysuru-based Kaynes Semicon to set up a unit in Gujarat
   • HCL and Foxconn's joint venture in Jewar, Uttar Pradesh
     Government has approved six semiconductor manufacturing projects that includes One Semiconductor Fabrication facility and five Semiconductor ATMP/OSAT facilities under Semicon India Program with cumulative investment of around Rs. 1,55,700 crore.¹¹ The approved projects are under various phases of implementation and are expected to be completed in 4–5 year timeframe.¹²
      
2. Display manufacturing: Another progressive initiative in India's semiconductor manufacturing space, building momentum, with an investment of ₹3,700 crore is the HCL-Foxconn joint venture in Uttar Pradesh. It is the sixth unit under the India Semiconductor Mission. The project aims to produce 36 million display driver chips monthly for mobile phones, laptops and automobiles.¹³
    
3. Component manufacturing: Murata, a Japanese company, is now building a factory at OneHub Chennai Industrial Park in Tamil Nadu¹⁴ to produce multilayer ceramic capacitors, strengthening India's position in the electronics manufacturing segment and subsequently cementing the Indo-Japanese partnership.

The other global players present in India are Applied Materials, Lam Research, and Merck, which bolster the vision of Atmanirbhar Bharat and build investment opportunities in the technology sector.¹⁵
 

Employment and workforce development

Strategic investments in research and development underpin India's commitment to technological advancement. The country possesses a strong foundation for technical talent development, producing over 2.14 million STEM graduates annually¹⁶ and is supported by premium engineering educational institutions.

Initiatives such as the Electronics Sector Skills Council of India (ESSCI) have been established to meet industry-specific knowledge requirements, ensuring educational outcomes align with industry needs. The ECMS is projected to generate direct employment for approximately 91,600 individuals¹⁷, with indirect job opportunities anticipated during its six-year tenure.

The expansion of talent development initiatives is also supported by tier-2 and tier-3¹⁸ cities, helping improve workforce readiness for high-tech roles, with particular emphasis on engineering, research and development and advanced manufacturing sectors.
 

Export growth and global market integration

While India's electronics exports currently represent a modest share of global trade, research suggests that with targeted policy interventions and ongoing industry development, India is expected to contribute approximately 4-5%¹⁹ of global electronics exports by 2030.

Notable advancements in the global sector include Foxconn's plans to double iPhone production in India by the end of 2025, aiming to assemble 25 to 30 million units²⁰. Additionally, Samsung's manufacturing facility in Noida has contributed to boosting mobile phone exports, which reached a record $20.4²¹ billion in 2024, marking a steady 44% increase from 2023.
 

Design-led manufacturing evolution

Beyond production capabilities, India is placing significant emphasis on indigenous design expertise by promoting ‘Designed in India' initiatives. This focus on design aims to capture higher-value activities within the electronics value chain while laying the groundwork for innovation in specific niche markets. India ranks third globally in the publication of chip design research papers.²² According to a BCG report, the country is also home to 19% of the world's chip designers.²³
 

India's future: A global electronics powerhouse

As the country moves forward in semiconductor journey, the eco system partners have also established their facilities in India. Applied Materials and Lam Research are two of the largest equipment manufacturers. Both have a presence in India now. Merck, Linde, Air Liquide, Inox, and many other gas and chemical suppliers are gearing up for growth of our semiconductor industry.

The balance of strategic infrastructure development, significant technology investments and comprehensive skill development programmes greatly positions India within the global electronics ecosystem.

Initiatives like the ECMS help the country build a skilled workforce while ensuring comprehensive policy frameworks that propel India forward as the ideal destination for global ESDM manufacturers.

Explore India's tech potential at Electronic Components and Materials and Electronic Equipment & Sub-assemblies.