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India’s electronics manufacturing sector is on a transformative trajectory, poised to grow at an impressive 25-30% CAGR by 2030. This expansion is fueled by rising domestic demand, government incentives, and increasing investments in semiconductor and component manufacturing. As the country moves towards self-reliance in electronics production, the sector is expected to contribute $500 billion in output by 2030.

Surging Demand for Electronic Components and PCBAs

A key driver of this growth is the escalating demand for priority components and sub-assemblies, particularly Printed Circuit Board Assemblies (PCBAs), which are projected to grow at a 30% CAGR and reach $139 billion by 2030. Currently, a significant portion of PCBAs is imported, but with the push towards localized production, the industry is set for a major shift.

Similarly, India's overall demand for electronic components is anticipated to hit $240 billion by 2030, supporting the country’s broader ambition of achieving $500 billion in total electronics production. This rapid expansion underscores the critical role of supply chain localization in reducing import dependency and strengthening India's position in the global electronics ecosystem.

Semiconductor Market Poised for a Fivefold Expansion

India’s semiconductor consumption is also witnessing remarkable growth, projected to soar from $22 billion in 2019 to $110 billion by 2030, reflecting a 16% CAGR. With the government’s strategic focus on semiconductor fabrication, assembly, and packaging, India aims to capture approximately 10% of global semiconductor demand by 2030.

The government’s Semicon India Programme, which includes a ₹76,000 crore incentive package, has already attracted leading global players to invest in India’s semiconductor ecosystem. These initiatives are expected to catalyze domestic chip manufacturing, reduce reliance on imports, and position India as a semiconductor hub for global markets.

India’s Growing Share in the Global Electronics Market

Despite its strong growth, India’s electronics industry currently accounts for just 4% of the global electronics market. However, with sustained investments, favorable policies, and rising domestic demand, this share is projected to increase to 6% by 2030.

The Production-Linked Incentive (PLI) schemes, along with favorable policy reforms, are enabling global electronics manufacturers to set up operations in India. Companies across consumer electronics, automotive electronics, and industrial electronics are expanding their footprint, further strengthening India’s electronics manufacturing ecosystem.

The Road Ahead: Towards Self-Reliance in Electronics

The next decade presents an unprecedented opportunity for India’s electronics sector. With rapid digitization, rising disposable incomes, and growing domestic and export demand, India is well-positioned to become a global hub for electronics manufacturing.

Key areas of focus include:

• Strengthening local supply chains to reduce import dependence on critical components like PCBAs and semiconductors.
• Investing in semiconductor fabs and assembly plants to meet domestic and global demand.
• Enhancing skilling and workforce development to support high-tech manufacturing.
• Boosting R&D and innovation to drive indigenous technology development.

With strategic policy support and industry collaboration, India’s electronics manufacturing sector is on the path to becoming a global powerhouse, unlocking massive economic and employment opportunities in the coming decade.

Our latest report explores the key factors driving India's electronics industry, analyzes talent needs, and highlights strategies to bridge skill gaps for a future-ready workforce. Download the Report today