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India’s electronics sector is on an accelerated growth trajectory, driven by government initiatives and increasing global demand. The country aims to establish itself as a $500 billion electronics manufacturing hub by 2030 through visionary policies and significant investments. Programs like the revamped National Policy on Electronics (NPE) 2019 and the Production Linked Incentive (PLI) Scheme are designed to attract investments, enhance local production, and reduce import dependency.

The PLI Scheme alone, with ₹1.97 lakh crore allocated across 14 key sectors, has become a cornerstone of this transformation, offering financial incentives tied to incremental production. Other initiatives like Make in India, Digital India, Startup India, and the Modified Special Incentive Package Scheme (M-SIPS) further bolster the industry’s growth. Additionally, programs such as the Electronics Development Fund (EDF), SPECS, and EMC 2.0 aim to build a thriving ecosystem for electronics manufacturing in India, including high-tech areas like semiconductors and displays.

The sector is projected to grow at an impressive annual rate of 25%-30%, underscoring its potential to become one of the fastest-growing global manufacturing destinations. Beyond these promising figures, the focus is on fostering innovation, strengthening the domestic ecosystem, and establishing India as a dependable alternative to traditional manufacturing hubs. With significant advancements in sectors such as semiconductors, consumer electronics, and renewable energy solutions, there is a long run ahead for growth. 

What’s Driving the Growth in India’s Electronics Sector?

India's ambitious policies and investments have laid a robust foundation for its electronics sector. These measures have not only facilitated self-reliance but also catalyzed a shift from heavy import dependence to domestic production. For instance, India has emerged as the world’s second-largest mobile phone manufacturer, producing nearly all its domestic demand locally—an impressive turnaround from the import-driven scenario of 2014.

The global adoption of the China+1 strategy is another significant factor propelling India’s growth. Rising costs and geopolitical uncertainties in China have prompted companies to diversify supply chains, and India has positioned itself as an attractive alternative. With its competitive labor market, favorable policies, and rapidly developing infrastructure, the country has gained a reputation as a reliable partner for global manufacturers.

Additionally, India’s manufacturing ecosystem is evolving to meet global demands for high-tech products. Companies are transitioning from traditional manufacturing to Original Design Manufacturer (ODM) models, offering end-to-end solutions, including product design and customization. This shift aligns Indian manufacturers with the growing global demand for components like semiconductors, EV systems, and advanced PCBs, solidifying the nation’s status as a global manufacturing powerhouse.

However, as the electronic sector grows, the demand for skilled talent has surged.  Our latest electronics report, highlights that the industry will employ 12 million people by FY 2027-28; however, a shortfall of 8 million skilled workers looms large. This challenge arises from a mismatch between academic curricula and the advanced skills required for roles in manufacturing, design, and troubleshooting. Without targeted intervention, this gap could hinder the sector’s growth potential.

Role of Apprenticeships in Bridging the Skill Gap:

To address these workforce challenges, apprenticeships have emerged as a practical and effective solution. By providing industry-aligned, hands-on training, these programs help bridge the gap between theoretical knowledge and practical expertise. Apprenticeships are particularly valuable in equipping workers with the skills needed for advanced technologies such as IoT, AI, and Industry 4.0, which are becoming integral to the electronics manufacturing landscape.

A collaborative approach involving the government, industry stakeholders, and educational institutions is critical to scaling these efforts. Through focused apprenticeships and reskilling initiatives, India can create a sustainable talent pipeline capable of supporting the electronic sector’s ambitious growth targets.