India’s electronics industry is entering a more ambitious phase. After rapidly expanding its capacity to assemble and manufacture finished products, the country is now focusing on a part of the value chain that has often received less attention — the components, materials and supporting industries that go into those products.
The government has set a target of building a $500 billion electronics manufacturing ecosystem by 2030. Reaching that level will require India to do more than expand factories for smartphones, televisions and other consumer electronics. It will need a much wider network of component manufacturers, suppliers, technology companies and specialised businesses operating within the country.
The Electronics Components Manufacturing Scheme (ECMS) is expected to play an important role in this next stage.
The component opportunity
India has made considerable progress in electronics manufacturing, but a large part of the value chain still lies outside the country. Many of the components and materials required for electronic products have traditionally been imported.
Building these capabilities domestically could change the economics of the industry.
Under ECMS, the government is encouraging companies to manufacture critical components in India. The scheme received an allocation of ₹40,000 crore in the Union Budget 2026-27.
By August 2026, 106 projects across 15 states had been approved, with proposed investments of about ₹69,548 crore.
The projects cover a wide range of products, including printed circuit boards, camera and display modules, connectors, passive components, lithium-ion cells and electronic enclosures.
For manufacturers, having more suppliers within the country can make production more efficient and reduce exposure to disruptions in international supply chains. It can also allow a larger share of the value generated by electronics manufacturing to remain within India.
A sector that has grown rapidly
The scale of India’s electronics expansion over the past decade is significant.
Electronics production has increased from around ₹1.9 lakh crore in 2014-15 to ₹13.11 lakh crore in 2025-26. During the same period, electronics exports rose from more than ₹38,000 crore to approximately ₹4.24 lakh crore.
The growth reflects rising domestic demand, new manufacturing capacity and investment encouraged through government support schemes.
The next challenge is to deepen this growth.
Producing more components locally would allow Indian manufacturers to participate in more stages of the production process instead of depending heavily on imported inputs. That could also create a larger market for domestic suppliers and smaller industrial businesses.
From investment commitments to actual production
The expansion is already beginning to show up on factory floors.
Government data indicates that 38 approved plants have started production, while another 16 projects are at advanced stages of construction or machinery installation.
As these facilities become operational, their impact could spread across the wider industrial ecosystem.
An electronics factory does not operate alone. It needs component suppliers, packaging companies, testing facilities, machinery providers, logistics operators, maintenance services and other specialised businesses.
This creates an opportunity for Indian MSMEs to become suppliers to larger electronics manufacturers and multinational companies.
More opportunities beyond the factory gate
The electronics boom could benefit businesses that are not directly involved in making finished electronic products.
Companies involved in precision engineering, moulds and tooling, industrial equipment, packaging, testing, logistics and maintenance can all become part of the expanding supply chain.
For smaller businesses, becoming a supplier to a large manufacturer can provide a route to scale, provided they can meet requirements related to quality, cost, delivery and technology.
The development of local suppliers could also encourage more foreign electronics companies to source from India rather than relying entirely on overseas supply networks.
Why semiconductors matter
India’s electronics ambitions are closely connected with its push to develop a semiconductor industry.
Chips are only one part of the larger technology ecosystem. Semiconductor manufacturing requires specialised materials, equipment, packaging, testing facilities and a dependable network of supporting industries.
A stronger component manufacturing base can therefore support the development of other advanced technology sectors.
This is where ECMS and the broader semiconductor push intersect. While the schemes have different objectives, together they contribute to building a deeper electronics and technology manufacturing base.
The jobs story is changing too
The expansion of electronics manufacturing is also creating demand for a wider range of skills.
Factories need technicians, machine operators, engineers, quality-control professionals and supply-chain specialists. More advanced manufacturing will also require people familiar with automation, electronics design, testing and digital production systems.
As India’s electronics ecosystem becomes more sophisticated, skill development will become increasingly important.
The opportunity is therefore not limited to creating factory jobs. It can also support employment in logistics, maintenance, engineering services, design, testing and other areas connected to manufacturing.
What the $500 billion target means
India’s goal of creating a $500 billion electronics manufacturing ecosystem by 2030, along with an ambition of around $150 billion in electronics exports, represents a significant expansion of the sector.
But achieving the target will depend on what happens after project approvals.
Factories will need to become commercially viable, suppliers will have to achieve global standards, and manufacturers will need to keep improving productivity and technology.
India will also have to compete with established electronics manufacturing centres in Asia and elsewhere. Cost competitiveness alone may not be enough. Quality, reliability, skilled talent, infrastructure and the ability to innovate will increasingly determine where global companies choose to manufacture.
Building a deeper place in global supply chains
The bigger objective is to change India’s role in the global electronics industry.
Instead of primarily assembling products using components sourced from other countries, India is seeking to develop capabilities across a much larger portion of the value chain.
That could create a wider economic impact. More domestic component production can support investment, strengthen MSME supply chains, create skilled employment and increase opportunities for exports.
For Indian businesses, the expanding electronics sector could open doors to higher-value manufacturing and specialised industrial services. For global companies, a deeper domestic supplier base could make India a more integrated part of their international production networks.
India’s electronics journey has already moved a long way from where it stood a decade ago. The next phase will be about going deeper — from finished products to components, from components to technology and from manufacturing for the domestic market to becoming a stronger link in global supply chains.
The $500 billion ambition is therefore not simply about producing more electronics. It is about building the industrial ecosystem needed to make more of those products, and more of their components, in India.