India’s Electronics Demand Will Touch $500B By 2030

- Advertisement -

In its report, the Confederation of Indian Industry (CII) suggested that India needs to shift the electronic sector from assembly-led to component-level manufacturing. 

Electronics manufacturing and demand in India is projected to increase from USD 102 billion in 2023 to USD 500 billion by 2030, indicating strong confidence from domestic and international manufacturers and investors, claimed CII in their recent report.

The report anticipates that key components and sub-assemblies, such as PCBAs, will experience significant growth, with a strong compound annual growth rate (CAGR) of 30%, reaching USD 139 billion by 2030.

- Advertisement -

The electronics sector in India offers substantial value-addition opportunities, ranging from 10% to 50% across different component types. This highlights the urgent need to shift from assembly-focused to value-added manufacturing at the component level. Integrating with Global Value Chains (GVCs) is crucial to meeting global demand with scalable, quality-driven electronic solutions.

The report issued recommendations for the government to scale up assembly activities to strengthen India’s domestic component ecosystem. It suggested enhancing local value addition and boosting exports through supportive policies. 

The government must implement SPECS 2.0 with 25% to 40% subsidies, prioritising components with lower capital turnover to spur investments.

It’s crucial to align import tariffs for critical sub-assemblies and components, targeting under 5%. Additionally, fostering open investments, imports, and technology transfers, along with updating regulations like Press Note 3 to meet current manufacturing demands, is imperative.

The report further emphasised promoting global investment via government-to-government initiatives. It also advocated fostering public-private partnerships in government institutions to aid smaller enterprises and facilitate collaborations with MSMEs.

Additionally, offering concessional land and Plug & Play infrastructure to streamline setup procedures at the state level is essential.

CII highlighted five critical components/sub-assemblies deemed essential for India: lithium-ion batteries, camera modules, mechanicals (enclosures, etc.), displays, and PCBs. Together, they accounted for 43% of component demand in 2022 and are projected to reach USD 51.6 billion by 2030. 

These components are either minimally produced in India or heavily reliant on imports. India cannot sustain this reliance on imported priority components. 

Similarly, PCBA (Printed Circuit Board Assemblies) presents significant potential, with most demand currently met through imports. This segment is expected to grow by 30%, creating a demand of approximately USD 87.46 billion by 2030.

According to the report, India’s electronics manufacturing has seen a surge in assembly driven by EMS operations in mobile, automotive, industrial, and telecom sectors, heavily reliant on imports due to limited domestic capabilities and significant dependence on China for 62% of electronic components. This poses risks to long-term sustainability and supply chain resilience. 

Thus, government policy support will lead to economic benefits from advancing India’s components and sub-assemblies ecosystem. This includes creating around 280,000 jobs by 2026, increasing domestic value addition, reducing dependency on imports, and boosting GDP growth. 

These efforts may help India to become a leading global hub for electronics manufacturing, concluded CII. 

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Global PC Market Up 3.1% YoY, AI Boom Ahead

0
Predicting an upcoming AI PC demand surge in the year's second half, the global PC market warms up with a 3.1% year-on-year increase in...

Roboshuttles, Autonomous Buses Revenue To Surpass $67 Billion By 2044

0
Experiencing gradual growth and slow adoption, the autonomous buses and roboshuttles global market may cross $67 billion after the next twenty years with a...

Global Smartphone Market Up 6.5% YoY in Q2 2024

0
Boosted by better consumer confidence and positive economic factors, reports say that the global smartphone sell-through volumes increased by more than 6% YoY in...

Buzz

TATA POWER RENEWABLE ENERGY & NHPC Partner To Solarise Government Building

0
Tata Power and NHPC partner to install rooftop solar on government buildings, aiming for 100% solarisation by 2025 under PM Surya Ghar Yojana. On Thursday,...

DeepTech Collaboration Boosts India’s Innovation Landscape

0
8X Ventures, Arctic Invent, and SanchiConnect collaborate, providing tailored resources and fostering innovation, significantly boosting India's DeepTech landscape. India's debut privately managed DeepTech Innovation Hub...

Tata Technologies Partners Arm To Innovate SDVs

0
Under this strategic partnership, Tata Technologies will create a SOAFEE reference architecture stack utilizing the Arm AE portfolio and Arm Compute Subsystems (CSS) for...

Important Sectors

TATA POWER RENEWABLE ENERGY & NHPC Partner To Solarise Government Building

0
Tata Power and NHPC partner to install rooftop solar on government buildings, aiming for 100% solarisation by 2025 under PM Surya Ghar Yojana. On Thursday,...

Tata Technologies Partners Arm To Innovate SDVs

0
Under this strategic partnership, Tata Technologies will create a SOAFEE reference architecture stack utilizing the Arm AE portfolio and Arm Compute Subsystems (CSS) for...

ADB Approves $240.5 Million Loan For India’s Rooftop Solar

0
ADB approved a $240.5 million loan to fund rooftop solar systems in India, aiding the government's efforts to boost energy access through renewable energy. On...

Global PC Market Up 3.1% YoY, AI Boom Ahead

0
Predicting an upcoming AI PC demand surge in the year's second half, the global PC market warms up with a 3.1% year-on-year increase in...

Tata Tech Lands Global EV Battery Design Contract

0
Boosted by five strategic agreements in the automotive and aerospace sectors, the company announced an operating revenue of Rs 1,269 crore for the first...

Manufacturing

Sparsh CCTV Invests $3 Billion To Boost Manufacturing

0
Sparsh CCTV invested $3 billion to enhance production capacity, aligning with 'Make in India' for surveillance equipment, focusing on scaling operations in Kashipur. Sparsh CCTV ...

Cooper Standard Launches Ecoflow For Electric Vehicles

0
This scalable fluid control technology, which can be used across various powertrains, is particularly effective for managing the intricate glycol thermal needs of fully...

Economic Ties Strengthens Between Taiwan And India

0
According to the trade body Chairman, James Huang, Taiwanese firms relocate supply chains from China to India, boosting India’s manufacturing and bilateral trade. As global...

LeePra Chooses Delvitech’s 3D AI AOI System

0
Eyeing efficient quality monitoring, LeePra Technologies has partnered with Delvitech to include advanced AI solutions in its manufacturing units. Last week, EMS provider LeePra Technologies...

India & Russia Partner To Boost India’s Defence Capabilities

0
Backed by Russia, HAL aims to produce and export Sukhoi Su-30 fighter jets in Nashik to enhance India's aerospace prowess and export potential. India's state-owned...