Indian Electronics Manufacturing Sector Grows 6x in Last 11 Years

India’s electronics manufacturing sector has achieved a remarkable sixfold growth over the past 11 years, reaching a valuation of over $150 billion by September 2025, up from approximately $25 billion in 2014. This exponential expansion, fueled by government policies and global demand, positions India as a rising hub for electronics production. In this article, we delve into the factors behind this growth, its implications for India’s tech ecosystem, and the sector’s future trajectory. Business Standard

India’s Electronics Manufacturing Surge: Key Details

The Indian electronics sector’s sixfold growth from 2014 to 2025 reflects a transformative shift in manufacturing capabilities. Key highlights include:

• Market Size: The sector grew from $25 billion in 2014 to over $150 billion in 2025, driven by smartphones, consumer electronics, and components like semiconductors.
• Key Drivers: Policies like Make in India, Production Linked Incentive (PLI) schemes, and the recent $20 billion Semiconductor Scheme 2 have spurred investment.
• Major Players: Companies like Samsung, Foxconn, and domestic giants like Dixon Technologies, alongside LG India’s ₹15,000 crore IPO, have scaled operations.
• Export Growth: Electronics exports surged, contributing to India’s $1 trillion export target by 2030, despite global challenges like China’s 4.4% export slowdown.

This growth aligns with milestones like BYD India’s 10,000 vehicle sales and the government’s extension of old MRP labelling until December 31, 2025.

Factors Driving 6x Growth

Several factors have propelled India’s electronics manufacturing boom:

• Government Initiatives: Make in India and PLI schemes offer incentives, attracting global manufacturers and boosting local production.
• Rising Demand: India’s 800 million+ smartphone users and growing middle class drive demand for electronics, from smartphones to EVs.
• Global Supply Chain Shift: Geopolitical tensions and supply chain disruptions have pushed companies to diversify manufacturing away from China, favoring India.
• Investment Surge: Foreign direct investment (FDI) in electronics, coupled with domestic efforts like Balaji Wafers’ ₹4,000 crore fundraise, has fueled expansion.

Implications for India’s Tech Ecosystem

The sixfold growth has far-reaching implications:

1. Global Hub Status: India is emerging as a key electronics manufacturing hub, competing with Taiwan and Vietnam, supported by the $20 billion semiconductor scheme.
2. Job Creation: The sector has created millions of jobs, aligning with trends like PhysicsWallah’s ₹1,426 crore salary spend, boosting India’s economy.
3. Tech Innovation: Increased production supports AI, 5G, and EV ecosystems, as seen with BYD India’s EV milestone and Google’s Veo 3 pricing cut.
4. Export Potential: Rising exports strengthen India’s trade position, complementing its leadership in cryptocurrency adoption.

The Bigger Picture: India’s Tech Transformation

India’s electronics manufacturing growth is part of a broader tech-driven transformation, alongside trends like Blinkit and Zepto’s 1 billion order milestone and Nasdaq’s tokenized stock trading. With initiatives like Digital India and global shifts like Japan’s Digital Yen and Alibaba’s $8 billion energy asset tokenization, India is leveraging its digital infrastructure to become a global tech leader. The sector’s growth mitigates reliance on imports, strengthening economic resilience.

Challenges, such as skilled labor shortages and infrastructure gaps, must be addressed to sustain this momentum.

What’s Next for India’s Electronics Sector?

As India’s electronics manufacturing scales, key developments include:

• Implementation of the $20 billion Semiconductor Scheme 2 to establish chip fabrication and packaging units.
• Expanding partnerships with global players like TSMC and Intel to boost semiconductor production.
• Enhancing skilling programs to meet demand for a tech-savvy workforce.
• Increasing exports to meet global demand for electronics, particularly in AI and EV components.

Conclusion

India’s electronics manufacturing sector’s sixfold growth over the past 11 years by 2025 marks a pivotal achievement in its journey to become a global tech powerhouse. Driven by government policies, global demand, and investments, the sector is reshaping India’s economy and tech ecosystem. As India aligns with global trends like AI and blockchain, its electronics manufacturing boom positions it as a leader in the digital age.