Is India About to Become the Next Electronic Hub? An In-depth Analysis

Solid Bases & Rapid Development

India has established itself as the second-largest base for smartphone production globally. Major companies such as Apple, Samsung, Xiaomi, and Google are assembling their smartphones in India, contributing to the country's position among the top five global manufacturers. Annually, India produces over 330 million smartphones.

The production of electronics in India has shown remarkable growth. It increased from approximately $105 billion in FY 2023 to estimated figures of $250–300 billion in the next five years, with an ambitious target of $300–500 billion by 2030.

Electronics exports have seen a significant surge. In April 2024, exports increased by about 25% year over year, reaching approximately $2.65 billion. "Made-in-India" phones are now being exported to regions like West Asia, Africa, and the United States, highlighting India's growing export capabilities.

Push from the Government: Initiatives & Policies

The Indian government's Production Linked Incentive (PLI) scheme has been instrumental in boosting local electronics manufacturing. The original electronics scheme has been updated and extended with a ₹25,000 crore incentive program, set to begin in March 2025. This initiative is expected to attract ₹40,000 crore in investments, targeting local production of critical components like PCBs, displays, camera modules, and batteries.

Further demonstrating its commitment, the India Semiconductor Mission received ₹6,903 crore from the interim 2024–2025 budget. This funding will specifically support chip and display manufacturing, including the establishment of fabs.

The Electronic Manufacturing Clusters (EMC) scheme is strengthening India's manufacturing capabilities. State-level clusters in Tamil Nadu and Kerala's Aranmula cluster are making significant strides. Additionally, improved infrastructure through EMC 2.0 clusters in key locations like Noida, Hyderabad, and Bengaluru is enhancing the ecosystem.

Investments are also being made in research and skills development, including the modernization of government labs like SCL Mohali, the establishment of new semiconductor testing facilities (e.g., Tata in Assam), and the creation of R&D facilities such as the Bharat Semiconductor Research Centre at IIT Madras.

Global Players & Large Investments

The collaboration between Apple and Foxconn is a major driver. Foxconn's $1.5 billion display-module plant near Chennai aims to manufacture iPhone display components. Notably, 97% of iPhones manufactured in India are currently exported to the US, with a value of $3.2 billion between March and May 2025.

India is attracting significant investments in semiconductor manufacturing. Tata's Assam plant is scheduled to open in mid-2025, and an HCL–Foxconn joint venture in Noida (Jewar) has secured ₹3,700 crore in funding for chip assembly.

Other notable investments include Karnataka spending ₹3,100 crore on industrial water infrastructure to support manufacturing, Dixon doubling its revenue through the assembly of Pixel smartphones, and Zyet Work opening an ESDM facility in Bengaluru.

Opportunities and Difficulties

Conclusion

Indeed, India is genuinely poised to emerge as a significant global center for electronics manufacturing. The country's domestic production is rapidly increasing, and export momentum is growing. The establishment of plants for expensive semiconductors and components further solidifies this trajectory. The policy ecosystem, characterized by initiatives like PLI and EMC schemes, is strong and dynamic.

To fully realize its potential, India must continue to promote supply chain depth, streamline regulations, and vigorously encourage R&D to keep pace with hardware scale. If India maintains its current pace and addresses these remaining challenges, it could become a major semiconductor and electronics powerhouse by 2030, moving beyond just assembling phones to becoming a comprehensive manufacturing hub.