The consumer electronics sector of India is driven by increasing domestic demand, government initiatives, a growing middle class, and increased foreign direct investment (FDI). According to a NITI Aayog report, India should target $500 billion in domestic electronics manufacturing by 2030, while suggesting specific policy measures such as tariff rationalisation and skilling.
The household electronics consumption is anticipated to grow by $270 billion by 2030; while smaller cities are driving the volume growth, backed by a rise in urbanization and personal disposable incomes. According to the Ministry of Electronics and Information Technology (MeitY), the Indian electronics market is anticipated to reach $300 billion by 2025–26.
India’s electronics sector is growing significantly and reached $155 billion in FY23, with production almost double from $48 billion in FY17 to $101 billion in FY23, driven mainly by mobile phones. India now manufactures 99% of its smartphones nationally. Apart from development through several initiatives such as Make in India and Digital India, India’s electronics market, with its share of just 4% of the world, remains focused on assembly with limited design and component manufacturing capabilities. The industry is expected to grow without additional measures to $278 billion by 2029-30, while generating around 3.4 million jobs and achieving $111 billion in exports.
Government initiatives such as the Production-Linked Incentive (PLI) scheme are important in boosting domestic manufacturing, decreasing reliance on imports, and increasing exports. PLI support across mobile phones, LED Lighting, air conditioners, and IT-Hardware assisting localization and domestic manufacturing, while making India competitive as an export hub. For instance, in October 2024, the third round of the PLI Scheme for white goods, particularly LED lights and air conditioners, received 38 submissions and reflecting a net committed investment of Rs. 4,121 crore ($476.2 million).
Why Electronic Products?
Robust Demand
India's growing middle class and rising disposable income are increasing demand for wearables, smartphones, laptops, and consumer electronics.
Competitive Advantage
India provides a cost advantage over developed markets, with competitive infrastructure, low-cost labor, and government initiatives making it an attractive manufacturing destination.
Government Support
The Government of India has launched several initiatives PLI Scheme, Make in India, Modified Electronics Manufacturing Clusters (EMC 2.0), Scheme for Promotion of Electronics Components and Semiconductors (SPECS), and many others, to promote electronics manufacturing and decrease import dependence.
Opportunities
AI-driven electronics, smart home devices, and 5 G-enabled products are growing the demand for IoT and Smart Devices. India's push for EV adoption is also creating demand for power electronics, battery management systems, and vehicle sensors.
