India is set to witness robust and significant growth in its electronics manufacturing industry, influenced by the ongoing transformation in global supply chains.

Reports indicate that India is becoming a pivotal location in the swiftly changing global electronics supply chain. This shift has already led to considerable increases in the production of smartphones and various electronic goods.

India's goal is to reach domestic electronics production valued at $500 billion, although a more cautious estimate suggests this number could be $282 billion by 2030. The report outlines three possible growth scenarios for the industry: conservative, moderate, and ambitious. Even in the conservative growth scenario, India is expected to achieve $282 billion in domestic electronics production by 2030.

A moderate outlook estimates production at $418 billion, while the ambitious projection, which aligns with NITI Aayog’s goals, suggests that production could soar to $500 billion if there is strong policy support and continued investment.

The report identifies mobile devices, semiconductors, and consumer electronics as the main factors driving growth. However, it also warns that some areas may experience slower growth due to restricted capital investment, which could slightly hinder the overall industry's momentum.

Currently the second-largest smartphone market in the world, India is forecasted to see the mobile and wearables segment expand to $159 billion by FY2030. Furthermore, the IT electronics market is expected to reach $ 32 billion by that same time, with demand for data servers likely to increase tenfold, further bolstering domestic production.

The telecommunications sector is also rapidly evolving. In the last five years, data traffic has increased sixty-fold, and by 2026, it is anticipated that over 65 percent of total data revenue will originate from 5G services. This surge will significantly boost the demand for telecom electronics and associated infrastructure.

Additionally, the industrial electronics sector is rapidly changing, with new areas such as EV chargers and smart industrial automation poised to become major growth drivers. India’s electronics manufacturing landscape is clearly on an upward growth path.

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Nevertheless, to achieve the upper end of these projections, ongoing policy support, improved infrastructure, and targeted investments in high-potential industries will be essential.